Boehner Pitches Two-Year Tax Rate Freeze

House Minority Leader Boehner today proposed freezing all current tax rates for two years and cutting all non-security spending back to 2008 levels.

"If we're able to do this together, I think we'll show the American people that we understand what's going on in the country and we'll be able to get our economy moving again and get jobs growing in America," said Boehner during an interview on ABC's "Good Morning America."

Boehner argued that government spending is excessive, creating uncertainty for small businesses and hampering job creation, while Americans are worried about the chances of a massive tax hike.

He has been promising to unveil a Republican plan to address the ailing economy, and Republicans aim to lay out later this month a broader agenda they say is focused on job creation.

Boehner's two-part proposal comes as President Obama is scheduled to speak on the economy today in Cleveland. Republicans are pitching spending cuts as an alternative to the likely passage this fall of what Boehner predicts will be a "bloated" FY11 omnibus spending bill. Exceptions to the cuts should be made for programs affecting seniors, veterans, and national security, under the GOP leader's plan.

The two-year extension of tax cuts, meanwhile, would freeze the rates enacted under former President George W. Bush, set to expire on Jan. 1.

Both chambers are considering whether to let those tax rates snap back to pre-2001 levels or to extend some or all of the cuts before they expire.

House Majority Leader Hoyer told reporters Tuesday that House Democrats intend to make sure "middle-income people not have their taxes increased." But he continued to indicate that Democrats are not interested in extending the higher-end tax cuts for wealthy individuals and households.

Hoyer also said that lawmakers returning to Washington next week "will have to address the issue of funding government for a period of time" before the elections.

This article appeared in the Saturday, September 11, 2010 edition of National Journal Daily.

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