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December 09, 2010 09:12 PM UTC

BREAKING: House Democrats Reject Obama Tax Cut Compromise

  • 79 Comments
  • by: Colorado Pols

UPDATE #2: From National Journal, covering the same resolution, which appears to confirm the earlier report of Rep. Jared Polis’ support for the deal–keep in mind that this was a voice vote:

Rep. Peter DeFazio, D-Ore., who introduced the resolution, said the vote was intended to instruct the House leadership to tell the Senate and the White House to go back to the table. “We have tremendous concerns about what was given away by the White House to Mitch McConnell in the Senate,” DeFazio said.

He noted that the vote in favor of the resolution was virtually unanimous. Sources said that only two members of the caucus — Reps. Shelley Berkley, D-Nev., and Jared Polis, D-Colo. [Pols emphasis] — were heard to support the deal.

—–

UPDATE: Refuting a story from a national liberal blog yesterday that Rep. Jared Polis was in support of the tax cut compromise, from a statement today:

Congressman Jared Polis (D-CO) joined a near unanimous House Democratic Caucus today in voting to prevent President Obama’s tax package from coming to the House floor for a vote in its current form.

“I voted with my colleagues today to block the tax deal from coming to the floor because there is still time to broker a better deal for working families.  I have always supported middle class tax cuts and I voted just last week to permanently extend tax cuts for those who make $250,000 or less and to let tax cuts for the wealthiest 2 percent expire.  Hopefully, this resolution will buy us some time to put our heads together and bang out a deal that better protects working families with provisions like a longer unemployment insurance extension and tax credits for green jobs and renewable energy.”

—–

Reports Politico, the rebellion among Democrats against the Bush tax cut compromise brokered between President Barack Obama and GOP leaders, which appears to have split Colorado’s U.S. Senate and House Democrats, rolls on:

The House Democratic Caucus voted to oppose President Barack Obama’s tax plan, throwing into flux weeks of negotiations on an issue that has turned many congressional Democrats against the White House…

While this doesn’t necessarily scuttle the whole tax deal, it is “highly unlikely” that the tax-cut agreement will come to the floor as is, according to senior Democratic aides. A tax compromise could still pass if an overwhelming majority of Republicans voted for it alongside several dozen Democrats. But at this point, Democrats are making it clear they want changes before anything comes to the House floor.

Pelosi spokesman Brendan Daly said that “this means we will not bring this [agreement] to the floor as is. It has to be changed…”

Comments

79 thoughts on “BREAKING: House Democrats Reject Obama Tax Cut Compromise

        1. “If these kids wanted a good education, they should have prayed harder to be born to rich parents” and “If these kids wanted health care, they should have prayed harder for healthier parents” and “If these kids wanted not to be burdened with debt for the rest of their lives, they shouldn’t have let rich people vote to cut their own taxes again.”

          It’s really a very simple pattern, although I guess for a while I wanted to believe kids were immune from Republican selfishness. I guess with the teabaggers now in charge, all Republicans have a choice to either quit (like Ali Hasan) or double down on the hatefulness (like Laughing Boy).

      1. I think immigration needs to be done at one time, and I’m not sold of giving amnesty and in-State tuition to people that are here illegally.

        There are parts of the DREAM Act that I like, but it’s mostly happiness at watching Harry Reid fail at something else.

          1. But that doesn’t mean I want to see Reid do anything but fail in every possible way while he’s there.

            When he said “This war is lost.” it was the end of any sort of good mojo coming his way from me.  That was the act of a scoundrel.

    1. Let’s borrow money from China, to give to the rich, so the middle class can pay it back later!

      That’s just so AWESOME!

      Deficit reduction? toast!

      Social security? crispy!

      Immigrant kids? Fuck ’em. They can’t vote.

      1. We could just stop spending so much on things like the failed stimulus or Obamacare.  Cut entitlements, trim (reasonably) from defense, etc.

        Just like one would do if one’s family was in a tight spot.

                    1. Democrats don’t close their blinds, and they should.

                      Republicans close their blinds, for no reason.

  1. if for no other reason than Congressional Democrats finally rediscoverying their spine.  If they had done so a year ago, there would be more of them left come January.

        1. He is still more popular than the entire Democratic Party who only managed 40% approval. And this is with nearly 10% unemployment.

          There is no way in hell Nancy is winning a primary and if by some fluke she did, absolutely no way she wins enough independents to take the general.

          Progressives may want Nancy or anyone else to primary Obama from the left, but it just isn’t happening. There isn’t a big enough base, even amongst Dems, for a successful primary against Obama. He is still the MOST progressive president we’ve had in decades. He is still insanely popular with African Americans and young voters which there will be a whole new wave of in 2012.

          As for the tax cuts, I thought Ezra Klein made valid points about how easy it is for progressives to say the President should have kept fighting at the expense of the unemployed, and middle-class tax increases. If the tax cuts expire at the end of the month, the lowest income tax bracket doubles. Are progressives really prepared to let the income taxes on the lowest bracket double? Are they prepared to get 0 UI benefits because the President didn’t get benefits for every single unemployed person?

  2. Good for Pelosi and the Dem caucus; it’s about time!

    The provisions related to the estate tax in the President’s ‘deal’ are outlandish and provide NO economic return.  Conversely, according to the government’s own economists, giving 8 million unemployed workers money which they will spend immediately, provides the absolute best ROI – return on investment; a fundamental theory of finance.  Giving money to 8 million unemployed workers will create demand for goods and services; a fundamental theory of economic growth.  

    Put another way:  rich dead people get more out of this deal than the long-term unemployed are getting.  The long-term unemployed are getting nothing out of this deal.  

    http://www.examiner.com/unempl

    1. all those unemployed are ONLY unemployed because they receive unemployment benefits. Once those are cut off, they will then cease to be unemployed (offically, on the statistics everyone likes to tout).

      Of course, then they will become homelss vagrants instead, but those are almost invisible citizens in our society, so again the Rs win. That is the whole concept of win-win when seen from a right-wing world-view…

  3. There are approximately 150,000 who are currently collecting unemployment compensation at this time.  As you can see, the President’s plan will only help one-half of all unemployed workers in the long run; it won’t help the long-term unemployed at all.

    The UI extensions included in the President’s compromise would cost $56b; that is 6.2% of the total price tag. That is what President Obama and the Republicans are willing to spend to help those who have suffered the most in this recession. Like many 99ers, I am absolutely stunned with President Obama’s unwillingness to help 8 million unemployed, middle-class professionals who were once thriving and successfuly participating in this country’s economy and the so-called ‘American Dream’.

    Pleae read my open letter to members of Congress:

    http://www.examiner.com/unempl

  4. ….let’s not forget that a bill has already passed the House making the majority of the Bush Tax cuts permanent, with NO Millionaire Tax Cut or Estate Tax bonus bailout.

    The House Dems don’t really have to do anything – they have a bill that Harry Reid has only a few weeks to send to the Senate floor, and they can use that as the bludgeon they need to beat the Repubs ruthlessly over their insistence on the Millionaire tax cut.

    Do they keep the “negotiations” going with the Repubs (“How about this? NO!”) but as we get closer to the break, roll the House bill out and force a GOP fillibuster?

    And so close to Christmas…I wonder how McConnell is going to feel about all the Grinch comparisons he’ll get?

  5. turns out the report was false

    http://polis.house.gov/News/Do

    Polis Statement on Caucus Tax Cut Vote

    Washington, Dec 9 – Congressman Jared Polis (D-CO) joined a near unanimous House Democratic Caucus today in voting to prevent President Obama’s tax package from coming to the House floor for a vote in its current form.

    “I voted with my colleagues today to block the tax deal from coming to the floor because there is still time to broker a better deal for working families. I have always supported middle class tax cuts and I voted just last week to permanently extend tax cuts for those who make $250,000 or less and to let tax cuts for the wealthiest 2 percent expire. Hopefully, this resolution will buy us some time to put our heads together and bang out a deal that better protects working families with provisions like a longer unemployment insurance extension and tax credits for green jobs and renewable energy.”

      1. I read Jame Hamsher’s blog about this yesterday and there isn’t a single ounce of proof in it, other than her own assertion. And that’s my problem with FDL and Jane. She often breathlessly asserts “breaking” stories that she can’t back up and are later disproved. It happened during the health care reform debate, more than a few times.  

        1. About blogging ethics, which is pretty much an oxymoron right now. MSU about politics is great for shooting the shit with your friends over ironic beer choices and indie rock, but it’s no way to blog.

        2. were several unnamed people who were in the meeting and reported having directly observed Mr. Polis lobbying in favor of the deal.

          Nothing has happened to refute the FDL story. As far as I have seen, Mr. Polis has not even denied the accuracy of Hamsher’s report.

          The fact that he voted one way today under pressure does not disprove the reports that he had been lobbying the other way the day before.

          1. Hamsher is NOT the only source to report that Polis was in support, look at the Pols’ update with the National Journal report. I think this could be another case of Polis caught with his head up his ass, like his little “oops!” on net neutrality.

            http://coloradopols.com/showDi

            Sorry, but it’s dubious as hell and rapidly becoming a pattern with Polis.

  6. One likely scenario…nothing, NOTHING gets done in the lame duck.  No START; DADT continues forever; No Dream Act…

    In January House repubs pass PERMANENT tax cuts for the wealthy; no extension of employment benefits.  Senate concurrs.  Obama can either veto the tax cuts or approve the permanent tax cuts.

    And, the repubs in the House go after Obama’s birth certificate and crap like that…and do nothing else….and win the Congress and the White HOuse in 2012…

    1. Several Republicans are already talking about the “difficulty” of allowing the payroll tax holiday to expire, and that the best solution would be a reduction in future benefits.  Outgoing moderate Sen. Voinovich has stated pretty much right out that a number of Republicans would use the payroll tax holiday as an excuse to begin dismantling Social Security.  That’s unacceptable.  Period.

      Democrats put up an unemployment measure stand-alone and it was shot down by Republicans.

      Democrats put up a middle-class tax cut extension stand-alone and it was shot down by Republicans.

      The way I see it, Democrats passing this deal now will get all the blame for the extra deficit spending in this bill, and Republicans in addition get to play the same game again during election season – UI and SSI benefits in 2011, and tax cuts in 2012.

      The other option is to stop playing the game by Republican rules.

      I don’t think even a reduced majority Senate will allow permanent extension of the upper-class tax cuts.  I don’t think Obama will allow permanent extension of the upper-class tax cuts.  And if Republicans are so heartless as to let the UI extension expire without negotiating something (e.g. transfer of UI money from unspent stimulus), then they’re worse than even I give them credit for.

      It is, perhaps, time to sit back and allow things to happen in their own time – i.e. the new year, when Republicans gain control of the House.  UI benefits are already expired, and will have to be retroactively extended.  Tax cuts won’t have any effect until the new year begins, and can also be retroactively passed.  Perhaps it’s time to force the Republicans to take an active part in passing legislation, rather than giving them carte blanche as the minority party of NO.

      1. Every time someone says, “Even Republicans wouldn’t be awful enough to let this happen!” s/he turns out to be wrong about a week later.

        “Even Republicans wouldn’t filibuster a defense bill just because they hate gays!” Ah, I remember that one.

        “Even Republicans wouldn’t filibuster unemployment benefits in the middle of the worst recession in 70 years!”

        “Even Republicans wouldn’t shut down all Senate business just to get tax cuts for the rich!”

        Yes, they are that heartless. Yes, all of them. That’s why even Ali Hasan left.

      2. The Republicans are playing very rough to gain control of our future economic decision. I think we have to fight back just as hard. And that probably will require going in to January before we get UI extended.

        But if we fold every time the Republicans threaten the American people, then they’re going to win on every big question.

        1. We’re in the minority, almost a superminority.  This has to do much more with “Progressive” ideals hitting the reality wall than it does mean old Republicans eating kitties or else on the floor of the Senate.

            1. Even in early ’09 when we were running on a Democratic high, the country was open to anything to fix the economy, we held the presidency and both houses of the legislatures – the GOP had game and played it very well.

                1. Not that many people care about the debt and spending. A lot, sure, but not a majority. If people don’t like HCR, it’s because they’re afraid of the boogeyman stories of months-long waits to see specialists and death panels, not because they fundamentally oppose “big government” or “entitlements.” And the party in power ALWAYS loses when the economy sucks.

                  Don’t be too tempted to believe the electorate has suddenly embraced Republican values. They don’t operate that way.

                2. …a professor of economics, Ph.D….

                  or jus’ plain ol’ Laughable Boy with a well-thumbed copy of Beginner’s Guide to Cliches That Require No Thought? Nothin’ like some good ol’ backwoods wisdom on how not to spend our way our a recession, right Herbert? (Oooooh, sorry, Mr. Hoover, didn’t mean to out you on the site! My apologies.)

      3. then they’re worse than even I give them credit for.

        My guess would be the repubs don’t give a rat’s ass for what you think.  They have a winning strategy.

  7. The unpaid tax cuts for the wealthy along with the virtual dismantling of the estate tax will cost well over 1 trillion dollars.  (Anybody thinking the “temporary” extension of the wealthy tax cuts will not be extended again during an election year is snorting too much fairy dust.)

    It’s shocking that it’s taken only about 50 years to revise by a thousandfold the quote attributed to the late Senator Everett Dicksen: “A trillion here, a trillion there, pretty soon, you’re talking real money.”

    All we can hope is that the economic stimulus from the other components will raise enough revenue to pay for this boondoggle.

  8. this evening that nobody is going to step up to reduce the deficit unless the wealthy pay their fair share first.  This from the billionaire publisher of US News & World Report.

    1. We can have everyone pay at an equal amount of financial pain.

      We can have everyone pay in equal proportion to the level they have benefited from our government.

      We can have everyone start off equally and then pay at the same rate.

      I’m all in favor of any of those equal ways of approaching it.

      1. to make all income subject to the payroll tax. She’s a venom-spewing, chain-smoking Socialist, is what she is! Tomorrow she joins Ali switching over to the other side — will Democrats forgive her vile past and embrace her? Stay tuned!

    2. The Republicans are still all about rewarding and sustaining unproductive wealth at every opportunity . . . even, from generation to generation.

      Even Warren Buffet wonders what’s wrong with a system that lets him pay less than his secretary and cleaner.

      “The 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter. If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.”

      http://www.timesonline.co.uk/t

        1. If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.

          and think, “You know, Warren’s right! I am damn lucky to be able to screw those other 99 per cent.  Is this a great country or what?”

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