Payroll Tax Cut

McConnell Swats Down GOP-Sponsored Bill To Raise Taxes On Millionaires

Brian Beutler | December 6, 2011, 3:50PM

Senate Minority Leader Mitch McConnell (R-KY) conducts a news conference along with fellow GOP members on Capitol Hill in Washington, D.C. on November 30, 2011.

Awkward!

Senate GOP leader Mitch McConnell brought a bunch of rank and file members to the microphones with him after a conference lunch Tuesday to discuss consumer finance regulation. But one of those Republicans -- Sen. Susan Collins (R-ME) -- is introducing legislation to fund economic growth measures with higher taxes on millionaires and oil companies. And reporters took the opportunity to ask McConnell to address her plan publicly, in her presence.

After trying futilely to pass the mic to Collins, McConnell said pretty unequivocally that his caucus will overwhelmingly reject her plan.

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Payroll Tax Cut

Collins, McCaskill Unveil Jobs Plan -- Including Millionaire Tax Increase

Brian Beutler | December 6, 2011, 2:45PM

Sen. Susan Collins (R - ME), left, and Claire McCaskill (D - MO), stand together during a presidential signing ceremony for the Improper Payments Elimination and Recovery Act at the White House in Washington, D.C. on July 22, 2010.

As reported earlier, Sens. Claire McCaskill (D-MO) and Susan Collins (R-ME) just dropped the details of their plan to extend the payroll tax cut, which includes other economic growth proposals. And both sponsors were explicit about the fact that their goal is to entice GOP senators to break their anti-tax streaks.

First the details on the legislation.

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Payroll Tax Cut

Collins, McCaskill Push Millionaire Surtax That Exempts 'Small Business'

Brian Beutler | December 6, 2011, 10:27AM

Sen. Susan Collins (R - ME), left, and Claire McCaskill (D - MO), stand together during a presidential signing ceremony for the Improper Payments Elimination and Recovery Act at the White House in Washington, D.C. on July 22, 2010.

Two senators, one Dem one Republican, are trying to break the GOP objection to raising taxes on millionaires to fund job creation measures. If they're successful, it will become the key to passing President Obama's payroll tax cut proposal, and driving a wedge between powerful anti-tax activists and the Republican party. But if Republicans object it will expose the hollow nature of their overwhelming opposition to taxing the affluent.

When Republicans object to small tax increases on millionaires they claim Democrats are proposing to raise taxes on "small businesses" or "job creators."

This is basically a distraction. Some businesses are organized as pass-through entities, in which federal taxes are paid by the owner as individual income taxes, including a hypothetical surtax on millionaires. But this is a small share of filers, and some of these filers are major, privately held companies -- not small businesses.

To strip Republicans of this objection, Sen. Claire McCaskill (D-MO) and Sen. Susan Collins (R-ME) are proposing to exempt these entities from the millionaire's surtax, and put the remaining revenue to paying for President Obama's payroll tax holiday.

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