Senate majority leader Harry Reid is rejecting House speaker John Boehner's plan to extend income tax rates for Americans earning less than $1 million. "Speaker Boehner’s ‘plan B’ is the farthest thing from a balanced approach. It will not protect middle class families because it cannot pass both Houses of Congress," Reid says in a statement.

In rejecting Boehner's offer, Reid is shooting down a plan once backed by two of the most liberal Democratic leaders in Congress, New York senator Chuck Schumer and House minority leader Nancy Pelosi.

"It would be much better to raise the limit to a million dollars," Schumer said on CBS's Face the Nation in 2010. "We have a big deficit problem. We have a big jobs problem. And I think that’s a good compromise."

In May of this year, Pelosi wrote a letter to Boehner endorsing the plan of extending tax rates for those earning less than $1 million. "Democrats believe that tax cuts for those earning over a million dollars a year should expire and that we should use the resulting revenues to pay down the deficit," Pelosi wrote.

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