Democrats divided over Obama tax cuts

WASHINGTON - Congressional Democrats wrestled Tuesday over whether to abandon President Barack Obama's tax-cut plan, with some House moderates joining Republicans in calling for an extension of Bush-era breaks for the wealthy as well as for middle-income earners.

But Senate Majority Leader Harry Reid of Nevada and House Speaker Nancy Pelosi remained solidly behind Obama's proposal to let tax cuts for upper-income people to expire as scheduled at the end of the year.

Divisions among Democrats contrasted with unity among Republicans in supporting a full renewal of all tax cuts, regardless of income, despite a 10-year cost to the government of $700 billion above Obama's plan. Still, House Republican leader John Boehner said over the weekend he would vote to extend the relief for only middle-income Americans if that were the only option available.

Some House Democrats, particularly moderates facing difficult re-election battles in districts carried by GOP presidential nominee John McCain two years ago, agree with a proposal offered by Republicans for a short-term renewal of all of the Bush-era tax cuts.

"We look forward to working with you to extend all income tax rates," a small group of conservative-to-moderate House Democrats wrote in a draft letter to party leaders as lawmakers trickled back into town yesterday from their summer break.

Democratic Reps. Jim Matheson of Utah, Melissa Bean of Illinois and Glenn Nye of Virginia were circulating the letter for more signatures yesterday afternoon and were picking up support. "Don't raise taxes in a recession," said Earl Pomeroy (D-N.D.).

There also was nervousness among Democrats over casting a difficult vote on taxes before Election Day following bruising votes on health care and global warming, among other matters. Some Democratic political professionals, however, think taxes are a good issue to define for voters the differences between the parties by casting Republicans as siding with wealthier people.