Politics

More Democrats urge broad tax breaks

interns Contributor

Forty-seven House Democrats have signed a letter to Speaker Nancy Pelosi urging that tax rates on capital gains and dividends be maintained at the current level of up to 15% for all earners.

It’s the latest sign of widening divisions among Democrats over plans by the party leadership and President Barack Obama to allow Bush-era tax breaks to expire for higher earners, defined as families making more than $250,000, while extending them for middle-income earners.

Many centrist Democrats in the House and Senate have objected, saying raising any taxes could harm job creation and slow economic recovery. The letter urging extension of the tax breaks for dividends and capital gains joins another letter to Mrs. Pelosi, signed earlier this month by 31 House Democrats, that called for a temporary extension of all the tax breaks for ordinary income.

The Senate last week abandoned its own plan to vote on a leadership-backed partial extension of the breaks, amid complaints from vulnerable incumbents that it could hurt their chances at re-election.

Full story: More Democrats Urge Broad Tax Breaks – WSJ.com

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