To: Kenneth E. Phillipps who wrote (95362 ) 11/15/2010 4:03:29 PM From: Hope Praytochange Respond to of 224858 Liberals in U.S. Congress press on tax cuts 11/15 01:27 PM * "Lame duck" session started Monday * Bush-era tax cuts expire at year end (Adds House leader Hoyer and quotes) WASHINGTON, Nov 15 (Reuters) - Liberals in the U.S. House of Representatives pressed their case against extending Bush-era tax cuts for the wealthiest Americans, seeking a meeting with Democratic leader Nancy Pelosi on the issue. Lawmakers returned to the Capitol on Monday in a "lame duck" session after Democrats were routed in the Nov. 2 elections, with time short to enact a 2011 budget and a New Year's Eve deadline on whether to extend tax cuts enacted under former President George W. Bush. The parties agree on an extension of lower rates for individuals earning less than $200,000 but disagree whether to extend those rates for the highest earners. Republicans say the economy cannot stomach higher taxes; Democrats say the nation cannot afford the cost of lower rates for the wealthiest taxpayers. In the meantime, other tax-cut ideas surfaced, including one by Democratic Senator Charles Schumer to cut taxes for anyone with an annual income below $1 million. House Majority Leader Steny Hoyer said Schumer's proposal was one of many under consideration. Don Stewart, a spokesman for Senate Minority Leader Mitch McConnell, said Schumer's approach was arbitrary, with "a number plucked out of the air with no economic basis." House liberals appealed to Pelosi to limit the scope of tax legislation. "We believe extending the Bush tax cuts would be a giveaway to the nation's wealthiest people and would significantly increase government debt," Democratic Representatives Raul Grijalva and Lynn Woolsey, the co-chairs of the Congressional Progressive Caucus, said in a letter to Pelosi dated Friday. The caucus has more than 80 members, the biggest subset among the Democrats. Many moderates lost seats in the mid-term elections, likely giving liberals a bigger say in the party in the House. Democrats and Republicans in the House and Senate were huddling this week to pick leaders for next year's Congress and to plot legislative strategy for the rest of this year. Many analysts expect a one- or two-year extension of all the current tax rates. President Barack Obama, however, wants to make any renewal of the current rates for individuals earnings $200,000 and under permanent, while making an extension of tax cuts for taxpayers earning more than that temporary. Proposal such as Schumer's might face tough odds in the short lame-duck session since they would require more of a rewrite of current law. Some members of Congress likely would demand time-consuming hearings. Obama has asked congressional leaders to meet with him on Thursday to discuss tax cuts. Legislation is not expected to be voted on until after next week's Thanksgiving break at the earliest. (Reporting by Kim Dixon and Richard Cowan; Editing by Leslie Adler)