McConnell Offers Bill to Keep Bush-Era Tax Rates

The Senate Republican leader proposed legislation on Monday to continue all of the Bush-era tax cuts indefinitely, testing the willingness of Democrats to allow a tax increase on the wealthiest Americans in a weak economy and making clear that a partisan fight will extend deep into the campaign season if not beyond.

The proposal by the Senate leader, Mitch McConnell of Kentucky, came a day after the House Republican leader, John A. Boehnerof Ohio, suggested a potential compromise, saying he would vote for President Obama's plan to extend the cuts only for households earning less than $250,000 if he had no other choice.

In part, Mr. McConnell’s proposal illustrated the greater leverage that Republicans enjoy in the Senate, where they control 41 seats — enough to filibuster and block any bill. While Mr. Boehner cannot stop House Democrats from forcing a vote on the president’s favored tax plan, Mr. McConnell made clear that he would have a say and that he wanted to put a handful of wavering Senate Democrats on the spot.

Democrats immediately dismissed Mr. McConnell’s plan, noting that he had not offered any way to make up the $700 billion in lost revenue over 10 years that extending the tax breaks at the highest income levels would cost the government.

Democrats need time to draft the tax bill, and also line up their votes. In addition, Mr. McConnell’s stance increases the likelihood that the tax fight could be drawn out, and Democrats have other crucial work to do before the sessions ends, including a temporary spending measure to finance the government until after the election.