Yesterday Senate Democrats proposed altering Obama’s American Jobs Act to pay for it with a 5% income tax surcharge on millionaires. They went this route, because Harry Reid could not convince DINOs to vote to remove loopholes for Banksters and Big Energy. It will not go far, because Republicans will filibuster, but it Democrats can convince Reid to force the vote, it will put Republicans on record as siding with millionaires.

Senate Democratic leaders on Wednesday proposed a 5 percent surtax on people with incomes of more than $1 million a year to pay for the package of job-creation measures sought by President Obama and to quell a brewing revolt among Democrats against the White House plan. The Senate majority leader, Harry Reid, Democrat of Nevada, said the surtax would raise $445 billion over 10 years, just about the amount needed to pay for the jobs bill. Mr. Reid said his proposal would “have the richest of the rich pay a little bit more” — “5 percent more to fund job creation and ensure this country’s economic success.” Mr. Reid’s proposal was meant to draw a sharp contrast with Republicans and to win over Democrats who were resisting the president’s proposal due to the tax increases he had suggested. The approach is unlikely to win any backing from Republican leaders who strenuously oppose increases in tax rates, saying they would put a damper on the economy and penalize “job creators.” But the plan, which Senate Democrats had aired last year to a cool response from the White House, is seen by party strategists as having appeal with the public.

Inserted from <New York Times>

This approach offers only one improvement over Obama’s original plan. It is easier for the general public to understand. However, it does nothing to to close the hedge fund loophole, big energy loopholes, corporate jet loophole, etc. This demonstrates the need to replace DINOs like Nelson and Landrieu with real Democrats.

Rachel Maddow reports on polls on this subject, ties it in with Occupy Wall Street, and discusses it with pollster Jeff Liszt.

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