By Peter Schroeder
Leading Democrats are putting together fallback proposals if Washington fails to reach a deal on the “fiscal cliff” that would allow the party to cast itself as seeking to cut taxes.
“Of course, I’ve got a backup plan in the event that we don’t succeed here,” Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, said Friday. “I’m sure the White House has one too.”
Tax rates are set to expire on most households in January if Congress does not act to extend some of the rates, something some Democrats have long seen as giving their party an advantage. Once the nation goes over the fiscal cliff, pressure would build on Congress to approve lower rates for taxpayers, most of whom make much less than $250,000 per year.
Baucus did not provide details on his post-cliff plan, and emphasized that he believes that Congress should find a way to avoid the fiscal cliff before it arrives.
Democrats prepare tax-cut bills in case nation goes over ‘fiscal cliff