Tax Cuts May Be First Conflict of New Congress

The Bush-era tax cuts may provide the first issue of dispute between Republicans and Democrats in the new Congress. Many experts say the lame-duck session of Congress is unlikely to deal with the tax issue,
The Hill reports.

"I don't think they're going to do them in the lame duck," says John Cannally, an economist for LPL Financial.

President Barack Obama wants the cuts, implemented in 2001 and 2003, continued only for those with an annual income of less than $200,000. Republicans want them extended for everyone.

Assuming a Republican-controlled House and a more evenly divided Senate, experts predict either all of the tax reductions will be extended for at least a year, or nothing will happen, which would mean a tax increase for everyone.