A senior Democratic aide said the main problem with Boehner’s proposal on rates is that it would raise about $200 billion, not enough to meet Obama’s target for raising a total of $1.4 trillion in new tax revenue as part of a debt deals. Combined with Boehner’s offer to raise $800 billion in new revenue over a decade from a rewrite of the tax code, that would leave $1 trillion in tax revenue.
But for Democrats, the tax proposal also highlights past divisions in the party over the rates.
Boehner’s offer echoes past Democratic proposals for a millionaire’s surtax that have always been strongly opposed by the GOP and by many business trade groups in Washington. The latest proposal could drive a wedge in the Democratic caucus, as it resembles proposals that have drawn support from Democrats from states with high-income cities and suburban areas such as California, New York, Connecticut and Illinois. A number of Democrats from New York, for example, have pushed to raise the income ceiling for tax cut extensions to reflect higher average incomes in New York City and surrounding communities.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.