TAX WAR!!!

In order to resuscitate the ailing economy, President Bush proposed a stimulus package. But here's the thing.

Democrats don't want the Bush tax cuts to be extended as part of the deal:

The growing consensus among Democrats, according to Schumer, is a package that includes targeted tax cuts for the middle class and certain spending programs. In the hearing, he cited "broad-based tax rebates, extending unemployment insurance and food stamps, targeted business tax cuts to stimulate job creation, and federal assistance to states."

Democrats also appear unified that "the number one obstacle" to quick action would be Republican efforts to extend the president's income tax cuts which expire in 2011. Schumer, the No. 3 Senate Democrat, said renewing those cuts "should be off the table, because they will thwart any chance of passing a stimulus package."

Republicans don't want tax increases to be part of the deal:

“We sincerely believe that Members on both sides of the aisle and the President can work together to craft a responsible package that reduces the tax burden on families and employers so they can more effectively deal with the rising costs of living that too many Americans know all too well,” House Republican Leader John Boehner and Republican Whip Roy Blount wrote in a letter to Speaker Nancy Pelosi on Tuesday.

“At the same time, it is incumbent upon Congress not to make matters worse by raising taxes on anyone, in any way, while ensuring the measure does not become a vehicle for unrelated spending that has no place in an economic stimulus package,” they wrote.

Someone's gonna have to give. Until then: TAX WAR!