Liberal lawmakers in both chambers had pressed their leaders to schedule a vote on legislation that would make permanent the tax cuts for families earning below $250,000 but allow the rates for families above that threshold to rise. Families in the top brackets would see their income tax rates rise from 33 and 35 percent to 36 and 39.6 percent, respectively.
Centrists and Democrats facing tough reelections, however, balked at voting for any tax increases. Republicans have argued for an extension of all of the current tax rates, which became law during the Bush administration.
Sen. Evan Bayh, a centrist Democrat from Indiana, said the divisions in his party emerged in stark contrast during the lunchtime meeting.
?A majority of opinion was probably for having a vote, but for a majority of people who were running, maybe not,? he said.
Instead of tackling tax rates, Senate Democrats plan to vote on legislation that would penalize companies that ship jobs overseas. They also must approve a stopgap spending measure to keep the government funded beyond Sept. 30, the end of the fiscal year.
