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Congress: Tax-cut showdown

“Inertia by Congress on the Bush-era tax cuts could likely push action into January, setting up the first face-off on a major issue between Republicans and Democrats in the new year,” The Hill writes. “A day before the midterm elections and two weeks before lawmakers return to Washington for a lame-duck session, two leading theories have emerged on what will happen on tax cuts -- either all of them will be extended for at least a year or nothing will happen.”

“It may be up to President Obama whether Congress extends the Bush tax cuts into 2011 in the weeks after tomorrow’s election or lets the automatic increase start cutting into most people’s paychecks early next year,” the AP says. “Despite the punishment his fellow Democrats are expected to take from voters, Obama has shown no sign of retreating from his insistence that families and small businesses with incomes above $250,000 return to higher tax levels starting Jan. 1. But Obama also has dodged the question of whether he would veto a bill that extends the tax cuts for everyone.”