Congress battles over Bush-era tax cuts, House expected to vote Thursday

By: Whit Johnson | CBS News
Published: December 02, 2010

WASHINGTON, D.C. -- Democrats and Republicans are battling over an extension of the Bush-era tax cuts.

The House is expected to vote Thursday on a democratic proposal to extend the cuts only for people who make less than $200,000 a year.

Republicans and Democrats appear closer to striking a deal on extending Bush-era tax cuts.

"We’re not going to raise taxes on anybody. The only thing we're discussing now is just how long that extension will be," Senate minority leader Mitch McConnell (R-Kentucky) said.

Officials close to the negotiations say a one to three year extension for all Americans is becoming increasingly likely.

Still, that isn't stopping House Democrats from trying to push through their proposal on Thursday. It would extend cuts for individuals making less than $200,000, and couples making less than $250,000. Higher income earners would see their cuts disappear.

"Tax cuts for the rich do not create jobs. They haven't throughout the Bush administration," House speaker Nancy Pelosi (D-California) said.

But Senate Republicans warn any bill that does not include an extension for the wealthy would be dead on arrival. The GOP has threatened to hold up any legislation until the tax cut issue is resolved. But the White House is optimistic an agreement will be reached.

"There will be ups and downs but I’m confident we're going to be able to get it done," President Obama said.

If it doesn't "get done" by the end of the year, all Americans will see their paychecks shrink.

Republicans have little incentive to make any concessions during this lame duck session. When the new Congress convenes in January the GOP will have much more clout.