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Why it's tough for Congress to act: Every loophole has its lover."Businesses complain that the high federal tax rate of 35 percent on corporations is what propels them to exploit every opportunity to shave their tax bill. And Washington is listening: Lowering that nominal rate in exchange for pruning the crop of special interest deductions is a principle embraced by President Obama and Paul D. Ryan, the Wisconsin Republican who is chairman of the House Budget Committee.Democrats argue that if fully phased in by 2016, it would push a family of three above the federal poverty line a level such earners have not surpassed since 1979."Millions of American workers will be watching how each senator votes today. To them, it's a matter of survival," Senate Majority Leader Harry Reid, D Nev., said before the vote.He pointedly added, "For Republicans, this vote will demonstrate whether they truly care about our economy."Republicans, solidly against the Democratic proposal, say it would be too expensive for employers and cost jobs. As ammunition, they cite a February study by the nonpartisan Congressional Budget Office that estimated the increase to $10.10 could eliminate about 500,000 jobs but also envisioned higher income for 16.5 million low earning people."Washington Democrats' true focus these days seems to be making the far left happy, not helping the middle class," said Senate Minority Leader Mitch McConnell, R Ky."This is all about politics," said No.
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