–Senate Minority Leader McConnell: ‘The Time To Act Is Now’
–Sen. McConnell: Economy Is ‘Too Fragile’ To Allow Tax Hikes
–Sen. McConnell: One Year Extension Would Buy Time For Broad Tax Reform

By John Shaw

WASHINGTON (MNI) – Following up his comments Wednesday with House
Speaker John Boehner, Senate Minority Leader Mitch McConnell Thursday
said Congress should pass legislation soon to renew the Bush era tax
cuts for “at least one year,” setting the stage for a major tax reform
effort next year.

“Let’s extend the current tax relief right now,” McConnell said, in
remarks on the Senate floor.

“The time to act is now,” he said.

McConnell said a one year extension would provide needed certainty
for an economy that is struggling.

“The economy is far too fragile now,” to allow large tax increases
to kick-in at the start of next year, McConnell said.

“It’s time to prevent this uncertainty,” he said.

McConnell argued that the economy is weaker now than it was in
December of 2010 when President Obama agreed to extend the Bush era tax
cuts for two years.

“It’s time to do that again,” he said.

McConnell said a one year extension would allow policymakers to
spend 2013 working on a “fundamental, pro-growth tax reform” package.

He said major tax reform was last undertaken in 1986. “It’s time to
do that again,” he said.

Boehner is expected to repeat his call for a one year extension of
the Bush tax cuts at a briefing later in the morning.

The push for a one year extension of the Bush tax cuts by the
Republican leaders is an integral part of their strategy for avoiding
the so-called fiscal cliff.

This refers to the convergence of three key fiscal events: the
expiration of the Bush era tax cuts at the end of 2012, the scheduled
imposition of across-the-board spending cuts, and the need for another
debt ceiling increase.

House Republican leaders have said they will hold the tax cut
extension vote in July.

Senate Republicans will presumably try to push the tax cut
extension this summer by trying to pass it as an amendment to other
legislation.

Senate Democrats are likely to try to block a direct vote on the
GOP plan.

White House Press Secretary Jay Carney dismissed a one year tax cut
extension for all of the Bush tax cuts at a briefing Wednesday.

“We should not and he (Obama) will not extend the tax cuts, the
Bush-era tax cuts, for the wealthiest 2 percent of the American people,”
Carney said.

** MNI Washington Bureau: (202) 371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]