Senate Minority Leader Mitch McConnell said Wednesday that Republicans remain opposed to any proposal increasing taxes on individuals making more than $1 million.
“I am not in favor of raising taxes on working people. I do favor extending the payroll tax holiday for another year in conduction with job creating proposals…so that it provides some relief on the job-producing side as well as tax relief,” the Kentucky Republican said Wednesday. “I think most Republicans are very reluctant to raise taxes on anyone during this economic crisis that we find ourselves in.”
The statement offered by the Kentucky Republican, who is the latest Republican to comment on a proposed version of a payroll tax cut extension offered up by U.S. Senators Claire McCaskill and Susan Collins, is the latest sign the Republican Party remains divided on the issue. Under the proposal, the payroll tax cut extension would be funded by a tax increase on individuals making more than $1 million, however a surtax would be carved out for small business owners.
Speaking Tuesday at a press conference, Ms. Collins explained offered a different explanation on the issue, saying the proposal has significant support from her Republican colleagues.
“A substantial number of Republican senators have said that they oppose the surtax because of the impact on small business. So our bill eliminates that argument,” Ms. Collins said in a statement.
“One of the primary objections to a surtax on very wealthy people has been its impact on small business,” Mr. Collins added. “That concern resonated with me. The fact that we have been able, in a bipartisan way, to come up with a means of protecting small businesses is potentially a breakthrough.”
President Obama has urged lawmakers to pass an extension of the payroll tax cut, saying the U.S. economy will likely face additional difficulties if an extension is not passed by the end of the year.
