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Dems seize on re-issued CRS tax report

Chris Van Hollen is shown. | AP Photo

Chris Van Hollen said the report 'put a stake in the heart of the Republican argument.' | AP Photo

The Congressional Research Service on Thursday handed Democrats their newest fiscal cliff talking points — again.

The nonpartisan research arm of Congress re-issued a report it recalled weeks ago questioning the theory, prevalent among many Republicans, that lowering taxes spurs economic growth. CRS shelved the original report following complaints from congressional Republicans.

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The updated report maintains the original report’s conclusions, and comes amid the fierce standoff between President Barack Obama and House Speaker John Boehner in fiscal cliff negotiations.

At the crux of the debate is the question of whether to increase tax rates for the wealthiest 2 percent of Americans. Republicans have long held that increasing tax rates, even just on the rich, will crush the economy.

Democrats are already using the new report as ammunition for their proposal to hike taxes on the wealthy.

Rep. Sander Levin of Michigan, the top Democrat on the House Ways and Means Committee, said the study “re-emphasizes the need for Republicans to end their entrenchment and to stop blocking a vote on the Senate bill that would extend the middle-class tax cuts.”

Levin was referring to Senate-passed legislation that would allow the Bush-era tax cuts to expire on families making more than $250,000. House Democrats filed a discharge petition to bring the bill to the floor, but so far it hasn’t garnered the signatures needed to force a vote.

Levin hopes the report encourages Boehner to bring the Senate bill to the floor, something that Texas Republican Kevin Brady told POLITICO on Thursday morning would be “unlikely."

The CRS report “put a stake in the heart of the Republican argument that small increases in the marginal tax rate for wealthy individuals somehow hurt economic growth,” said Rep. Chris Van Hollen, the ranking Democrat on the House Budget Committee.

The Maryland lawmaker accused the GOP of trying to hide the report.

“Republicans tried to suppress this evidence,” he said. “They tried to prevent this report from seeing the light of day because they don’t like any evidence that exposes the fiction of their economic theory.”

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