By Alexander Bolton
Texas Insider Report: WASHINGTON D.C. Senate Democrats have jettisoned President Obamas proposal to raise taxes on families making more than $250000
raising the threshold to $1 million in an attempt to win more Democratic votes.
Democratic leaders say they want to impose a 5 tax on the tax liability of millionaires which would raise about $445 billion over 10 years roughly the cost of Obamas jobs proposal.
Even with the overhaul of Obamas jobs package Senate Majority Leader Harry Reid (D-Nev.) said he was not certain it would gain unanimous Democratic support. But Democratic leaders believe the change will broaden the bills popularity in their caucus.
Were going to move to have the richest of the rich pay a little bit more" Reid said at a Wednesday press conference.
Drawing the line at a million dollars is the right thing to do. In the eyes of many it is hard to ask more of households that make $250000 or $300000 a year. They are not rich" said Sen. Charles Schumer (N.Y.) chairman of the Democratic Policy Committee.
In large parts of the country that kind of income does not get you a big home or lots of vacations or anything else that is associated with wealth in America.
Schumer who represents New Yorks borough of Manhattan one of the wealthiest parts of the country and the rich enclaves of Long Island and Westchester County has long pushed to raise the

threshold on raising taxes to a million dollars. He argues its a cleaner political argument for Democrats to make.
On Wednesday Schumer said raising taxes on families earning more than $250000 a year as Obama has long supported would affect small businesses an argument that is more associated with Republicans than Democrats.
It also would affect too many small businesses if you drew the line below a million dollars he said.
There are businesses small businesses that struggle. So we believe the million dollars is the right line because in many parts of the country there are two-income households that earn that much. That doesnt make them rich.
Schumer said families and businesses that earn between $250000 and $1 million are firmly in the middle class.