Washington (CNNMoney.com) - Washington's big debate – whether or not to extend the Bush-era tax cuts – heated up Wednesday, and appeared headed for a showdown when Congress returns from its summer break next month.
Top Democrats will tackle new tax legislation in September when they return from summer break, according to a spokesman for Senate Majority Leader Harry Reid, D-Nev.
Democrats want to try to extend the middle-class tax cuts passed back in 2001 and 2003 during the George W. Bush administration. But they want to let cuts lapse – essentially hiking taxes – for individuals making more than $200,000 and families making $250,000 annually.
Republicans accused Democrats of trying to quash the economic recovery.