How Will the Tax Stalemate in Congress Impact Your Pocket?

Democrats and Republicans are at odds over whether to end the Bush tax cuts. Senate Democrats passed a bill extending the rates for some Americans this past week, but House Republicans say they won’t consider a bill that doesn’t include a full extension for all income levels. What does this stalemate over the tax rate mean for all Americans?

Former aide to Senator Chuck Schumer (D-NY) and Fox News contributor, Christopher Hahn predicted that Congress will agree on a deal of tax cuts extending to people with incomes of one million dollars. He said on America’s News HQ that, “We all agree on two basic truths. We want to see the first $250,000 dollars of

… income continue to have these tax cuts, and we all believe that people like Mitt Romney whether they get this tax cut or not will still have plenty of money to have nail polish for their horses.”

Laughing off Hahn’s jab at Governor Romney, Fox News political analyst Angela McGlowan weighed in on the impact of not extending the tax cuts. She said it will hurt the economy and small business owners who make up the backbone of the country. She added, “What we need to do is extend those tax cuts for everyone, then simplify the tax code, decrease capital gains and eliminate the death tax. We need to stop the spending in Washington D.C. and give the American people more money to keep in their pockets because they know what to do with it, Big Brother government isn’t it.”

Hahn disagreed, saying, “You get a tax cut for the first $250,000 dollars of income under the current plan, the plan passed by the Senate this week, no matter what. If you make a million dollars you get the tax cut for your first $250,000 dollars, so this is a tax cut for everyone.”

McGlowan countered, “If we don’t extend the tax cuts, you’re going to have investors that are not going to invest. You’re going to have more companies lay people off. That means more people will get on the federal dole.”