REPORTS: Democrats Considering Higher Income Threshold For Tax Hikes

harry reid

Photo: centre for American Progress via Flikr

New details are emerging about a possible Biden-McConnell plan that would involve Democrats considering a higher income threshold for tax rates on both the individual and couples rates. CNBC’s John Harwood cites a source close to the matter on-air indicating that the Democrats have given the GOP more leeway on the matter.

Here’s the tweet from Harwood:


Even more, a report from POLITICO’s John Bresnahan, Manu Raju and Jake Sherman indicates that a Biden-McConnell plan could thread the needle necessary to get a package through: 

McConnell and Biden, who served in the Senate together for 23 years, are closing in on an agreement that would hike tax rates for families who earn more than $450,000, and individuals who make more than $400,000, according to sources familiar with talks

There was no word on whether this deal would attend to sequestration — the mandatory budget cuts both parties seek to avoid — but earlier reports indicate that these cuts may be deferred to 2015.

The deadline is now hours away, as tax rates for every American increase at midnight. 

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