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U.S. Senate blocks middle-class tax cuts
12:24 pm ET 12/04/2010 - MarketWatch Databased News

NEW YORK (MarketWatch) -- The U.S. Senate Saturday turned back bids by Democrats to permanently extend middle-class tax cuts enacted during by the Bush administration, but the votes are unlikely to impact broader talks, according to published reports.

In unusual weekend votes, the Senate voted 53-36 in defeating attempts to start debate on a proposal to extend lower tax rates for people earning under $200,000 and couples that make less than $250,000, The Wall Street Journal and others reported.

Just ahead of the votes, Sen. Charles Schumer, D-N.Y., argued against extending "tax breaks for millionaires and billionaires at a time of huge deficits," according to Associated Press.

Conversely, Republicans argued against any tax hikes when the economy is still recovering for the recession. "It is the most astounding theory I have ever seen, raise taxes to create jobs," said Sen. John Thune of South Dakota.

Senators also voted 53-37 against another attempt to raise the income bar for middle-class tax cuts to $1 million and then extend that threshold permanently, with Republicans unanimously rejecting both and some Democrats also voting against the majority.

Saturday's vote came ahead of what's seen as a possible agreement next week between the Obama administration and congressional leaders on a bill that would block tax increases at all levels, as the GOP would like, and an extension of benefits to the long-term unemployed, as Democrats want.