Democratic Caucus Votes to Reject Obama Tax Compromise
- Posted on December 9, 2010 at 12:45pm by
Jonathon M. Seidl
- Print »
- Email »
Reports that House Democrats were warming up to President Obama’s tax rate compromise with Republicans appear to be wrong. In a closed-door meeting of the House Democratic caucus, Democrats voted to reject the deal and are expected to do the same thing when the plan officially hits the House floor.
From The Hill:
The House Democratic Caucus on Thursday rejected the tax deal negotiated between the White House and Senate Republicans.
The non-binding vote held during a closed meeting of the caucus puts tremendous pressure on House leaders to fight for changes to the proposal.
“I don‘t think there’s any doubt that [Speaker Nancy Pelosi] will follow the caucus,” Rep. Lloyd Doggett (D-Texas) told reporters.
UPDATE from the Associated Press:
House Democrats voted Thursday to reject President Barack Obama’s tax deal with Republicans in its current form, but it was unclear how significantly the package might need to be changed.
By voice vote in a closed caucus meeting, Democrats passed a resolution saying the tax package should not come to the House floor for consideration as written, even though no formal House bill has been drafted. Rep. Peter DeFazio, D-Ore., introduced the resolution.
Said Rep. Lloyd Doggett, D-Texas: “If it’s take it or leave it, we’ll leave it.”
The vote will at least temporarily stall what had seemed to be a grudging Democratic movement toward the tax package.
House Speaker Nancy Pelosi said in a statement that House Democrats share Obama’s “commitment to providing the middle class with a tax cut to grow the economy and create jobs.” She noted that a House-passed bill, which Republicans blocked in the Senate, did not include “a bonus tax cut to millionaires and billionaires.”
“We will continue discussions with the president and our Democratic and Republican colleagues in the days ahead to improve the proposal before it comes to the House floor for a vote,” the California Democrat said.
The voice vote in the caucus was quite lopsided. Rep. Shelley Berkley of Nevada told reporters afterward that “one person voted against it. That would be me.”
Asked what happens next, Rep. James Clyburn of South Carolina, the No. 3 person in the Democratic leadership, said, “I don’t know.”
Speaking earlier Thursday at a White House event promoting American exports, Obama said the vote will determine whether the economy “moves forward or backward.”
The president again pressed Congress to pass the agreement, saying it has the potential to create millions of jobs. He said if it fails, Americans would see smaller paychecks and fewer jobs.
But Rep. Chris Van Hollen, D-Md., said “the jury is still out” on the measure’s enactment because many Democrats are furious over an estate tax provision.
Obama agreed to exempt the first $5 million of a deceased person’s estate, and to tax the rest at 35 percent. Congressional Democrats had expected a 45 percent tax rate on anything above $3.5 million. Without congressional action, the estate tax will revert to an even higher rate: 55 percent on estates valued above $1 million. That should have strengthened Obama’s hand when negotiating with Republicans, Van Hollen said.
Some Democrats have reluctantly embraced the tax package, which would let rich and poor Americans keep Bush-era tax cuts that were scheduled to expire this month. Even so, 54 House Democrats wrote a letter to House Speaker Nancy Pelosi saying they’re opposing the deal.
Led by Rep. Peter Welch of Vermont, they said they were against “acceding to Republican demands to extend the Bush tax cuts to millionaires and billionaires.”
“We‘re paying a king’s ransom,” Welch said in an interview. “We didn‘t need to and couldn’t afford to.”
The 54 Democrats, by themselves, would not be enough to block the package in the House, depending on how much support it gets from Republicans.
After Obama publicly defended the plan for a third day Wednesday, and Vice President Joe Biden met with Democratic lawmakers in the Capitol for a second day, several Democrats predicted the measure will pass, mainly because of extensive Republican support.
Rep. Barney Frank, D-Mass., predicted the tax cut compromise “will be passed by virtually all the Republicans and a minority of Democrats.” He said he would vote against it.
Obama said more congressional Democrats would climb aboard as they studied details of the $900 billion year-end measure.
Raising the direst alarm yet, his administration warned fellow Democrats on Wednesday that if they defeat the plan, they could jolt the nation back into recession.
Larry Summers, Obama’s chief economic adviser, told reporters that if the measure isn’t passed soon, it will “materially increase the risk the economy would stall out and we would have a double-dip” recession. That put the White House in the unusual position of warning its own party’s lawmakers they could be to blame for calamitous consequences if they go against the president.
With many House and Senate Republicans signaling their approval of the tax cut plan, the White House‘s comments were aimed mainly at House Democrats who feel Obama went too far in yielding to Republicans’ demands for continued income tax cuts and lower estate taxes for the wealthy.
Obama says the compromise was necessary because Republicans were prepared to let everyone‘s taxes rise and to block the extension of unemployment benefits for jobless Americans if they didn’t get much of what they wanted.
Economists say the recent recession officially ended in June 2009. But with unemployment at 9.8 percent, millions remain out of work or fearful of losing ground economically, and the notion of the nation falling back into a recession would strike many as chilling. It also could rattle markets and investors.
The deal Obama crafted with Senate Republican leaders would prevent the scheduled Dec. 31 expiration of all the Bush administration’s tax cuts enacted in 2001 and 2003, even though Obama had often promised to end the cuts for the highest earners.
House Democrats, who will lose their majority in January, still hold a 255-179 edge in the current Congress. To pass a big bill with mostly Republican votes would mark a dramatic departure from recent battles, such as the health care overhaul, which was enacted with virtually no GOP support in either chamber.
Passage of Obama’s plan seems more assured in the Senate, where numerous Democrats have agreed that the president had little choice in making the compromises with Republicans. Still, Majority Leader Harry Reid, D-Nev., said he and colleagues are considering possible changes, and action could come within days.
UPDATE:
Robert Gibbs responded to Democratic criticism in his White House press briefing:
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 679 Comments
‘Jumah at the DNC’ Speaker: ‘Muslims Visited America Prior to Columbus’ & ‘It Was a Muslim’ Who Guided Him to the ‘New World’ 531 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 433 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 373 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 329 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 285 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 290 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 174 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 148 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 301 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 285 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (76)
chuchu12
Posted on December 9, 2010 at 1:57pmthere is a simple answer to all of this for obama….switch parties and work 100% with the GOP. I would love to see an interview with (1000% pinhead) Sharpton after that..lol. obama has put the country on a dangerous path and now he has insiders that he trusted that he most likely can no longer trust. there is no telling how this is going to end now. God bless this country.
Report Post »publiuswarmac9999
Posted on December 9, 2010 at 1:49pmThe Democrats look petty and anti-American. In essence, they have exposed their true nature.
Report Post »sdranger
Posted on December 9, 2010 at 1:44pmSmoke and mirrors guys!! This is by design DO NOT think these people are idiots (well at least when it comes to thier own political survival). This is being made to look like Obama is coming to the center, he IS NOT do not fall for it. I’ll bet they are laughing thier collective (pun intended) butts off in those closed door meetings.
Report Post »BalancedInteger
Posted on December 9, 2010 at 1:36pmEveryone notice how the Dems are trying to frame this as a “tax cut.” They are not, and the Repubs better get out in front of that real fast. This merely an attempt to stop a tax hike on the quote-unquote wealthy.
More to the point, preventing a tax hike is not, by its very nature, stimulative. Anyone who is expecting all of that hoarded-up cash to get loosened up a little should those hikes be prevented should think about that.
Report Post »REETZBEE
Posted on December 9, 2010 at 1:34pmThey’re going to pass the tax cuts in the end and most likely before the holiday break. It’s all political theater just to show they voted against the cuts for re-election in 2012. They‘re so pissed off the can’t hose the wealthy why don‘t we investigate how much tax the Dem’s owe themselves. Last I heard John Kerry still owes $500,000 on his yacht.
Report Post »TonyDarrington
Posted on December 9, 2010 at 1:40pmThey aren’t tax cuts. It is a vote to keep the tax rate the same. Don’t fall for the semantics. They want us to believe they are passing tax cuts so when the economy isn’t stimulated, the Dems can say “Tax cuts don’t work.”
Report Post »A vote to extend the Bush tax cuts is a vote to keep taxes the same. Keeping taxes the same will have no effect on the economy. Letting the tax cuts expire will raise taxes and cause a deeper depression.
REETZBEE
Posted on December 9, 2010 at 1:53pmI realize they’re not tax cuts but an extension of the current. Sorry if I didn’t put the word Bush in front of tax cuts.
Report Post »jagr1850
Posted on December 9, 2010 at 1:31pmcan’t wait till january 1st when the dumocrats are unemployed ……$$$$$$$$$
Report Post »jacobstroubles
Posted on December 9, 2010 at 1:29pmpajamash,
Actually we dont have to wait until the next election cycle. We can and absolutley should start recalling every last one of them to include starting immediate impeachment process on bho.
Giving any of them two more years is like telling a junkie that you’ll still give the herion or the meth he needs, but in two years you’re gonna pull the plug… wrong treatment or therapy program for very sick and addicted people. You have to take them off it cold turkey. We need to get rid of them now..not in two years. We will only prolong the horrific damage they are causing for millions and million s of tax paying americans.
They are lauging at Americans, cause they dont think we have the kanonnies to pull the plug on their wild and unbridled corruption.
Report Post »8jrts
Posted on December 9, 2010 at 1:21pmSo many people need to wake up to what the Dems are doing in their “closed door” sessions. They love the bait and switch….watch what the other hand is doing!
Report Post »booger71
Posted on December 9, 2010 at 1:17pmI hope the Dems do block it. The conservatives will be in a better position come Jan to broker a better deal
Report Post »BoilitDown
Posted on December 9, 2010 at 1:31pmJanuary will be too late to prevent damaging the economy if I understand the reputable (non-Keynesian) economists.
Report Post »bulletsinthegun
Posted on December 9, 2010 at 1:13pmSeems like Custers last stand to me, I going to go out with a bang
Report Post »doctroprint
Posted on December 9, 2010 at 1:13pmSo, the left are very upset and do not want the tax extension and are upset.
The right are very upset and do not want the dream act in play.
Watch this kids, they will wrap them together and say we all win.
If this happens, it’s over, goodnight. Ohh by the way, keep your eye on
Report Post »1) net neutrality
2) FCC +Sharpton
3) wiki leak cyber war
4)DHS terrorist and facebook
It’s here folks, be prepared.com
Potato1000
Posted on December 9, 2010 at 1:12pmAnd unhappy Dems can’t primary Obama. Why? One number: 96.
http://www.libradex.com/viewArticle.aspx?id=101
Report Post »Potato1000
Posted on December 9, 2010 at 1:10pmAll the class warfare rhetoric Dems have been using for 9 years on the tax cuts “for the rich” is now biting them back hard.
Chomp.
http://www.libradex.com/viewArticle.aspx?id=114
Report Post »crossdraw
Posted on December 9, 2010 at 1:08pmWhat a world this would be if only they would reject themselves. Being rejects and all.
Report Post »POIPNE
Posted on December 9, 2010 at 1:04pmThe term “Party of NO” appears to have moved across the aisle.
Report Post »jacobstroubles
Posted on December 9, 2010 at 1:31pmThey’re “all playing a very nasty game at the american tax payers exspense. They are ALL corrupt.
Report Post »Recall all of them NOW!
TonyDarrington
Posted on December 9, 2010 at 1:00pmLet taxes go up. More Americans need to be affected by this economy. We can tie the inevitable crash to the increase in taxes.
Report Post »If the Bush tax cuts are extended, the economy still won’t improve, and the Dems will say, “See we lowered taxes, and the economy didn’t recover.” Even though, taxes are not being lowered, that is how the extension is being sold. The lack of recovery will be ammo against conservatives.
Things have to get worse before they get better. All of the federal social programs have to go away, and it will be a long, painful process to do it.
lecar
Posted on December 9, 2010 at 1:06pmTony, I think you are onto something. In the end this is political BS that is only meant to keep the incumbents in power (irregardless of party affiliation).
Report Post »TonyDarrington
Posted on December 9, 2010 at 2:29pmStates, local governments, churches, private organizations. The federal government should not have an impact in the daily lives of individual citizens. You are much closer to the state and local government representatives. They better know what the needs of your community are and what solution will best work. What works for California does not work for Indiana. What the people of Indiana want is not what the people of Florida want. If you notice, not all states vote for the same presidential candidate. It is because they are all different and have different attitudes.
Report Post »I am a big proponent of the Federal Government forming a loose framework to hold the states together, with the citizens of each state deciding what level of government involvement they want at the state and local level.
cowpill
Posted on December 9, 2010 at 12:58pmI would write my congressman but he is a DEM Pelosi duckwalker, so I am pretty much f^(&ed.
Report Post »FedUpAlready
Posted on December 9, 2010 at 1:53pmI feel your pain I live in Taxachusetts where they’re all Pelosi Duckwalkers and one Reid duckwalker, the verdict isn’t in yet on Scott Brown, he seems to swing both ways, we’ll see!
Report Post »Gonzo
Posted on December 9, 2010 at 12:56pmI hope they do, it will be a fantastic Christmas present for the Republicans. We can pass the extensions permanently in January and make Obama pay for unemployment benefits out of his stimulus slush fund…and kiss START goodbye!
Report Post »DagneyT
Posted on December 9, 2010 at 1:04pmYou don’t want to let them expire, come 1st payday in January, your net will be LESS!
Report Post »GardenoftheGods
Posted on December 9, 2010 at 1:04pmAbsolutely correct…hope they don’t vote on it….WE RULE IN 2011! Pass it this year & GOP screws US too.
Report Post »Gonzo
Posted on December 9, 2010 at 2:22pmDagnyet: They can make the extension retroactive from Jan.1st. No harm, no foul.
Report Post »megansmom
Posted on December 9, 2010 at 12:53pmTAx deal bets tax cut
Report Post »Elrik68
Posted on December 9, 2010 at 12:53pmJust some re-election garbage so they can come back and claim that they voted against it, before they voted for it….
Report Post »untameable-kate
Posted on December 9, 2010 at 1:12pmYeah, and did you hear Obama suggest that they would like it if they read it? He wants them to READ it. HaHaHa
Report Post »mtnclimberjim
Posted on December 9, 2010 at 12:52pmcollapse the system
Report Post »cubber
Posted on December 9, 2010 at 12:50pmTo me, they are all caving. Two goals. Reduce spending and reduce taxes. That’s it. BE PREPARED because they are not going to get it done in time.
Report Post »Elrik68
Posted on December 9, 2010 at 12:58pmThere is no reduction in taxes here. 2% payroll deduction, but you will still owe the same at the end of the year.. Bait and Switch plain and simple.
Report Post »untameable-kate
Posted on December 9, 2010 at 1:02pmCUBBER are you saying they should reduce taxes and reduce spending then?? Got it!
Report Post »cubber
Posted on December 9, 2010 at 12:49pmVery interesting. BE PREPARED.
Report Post »@leftfighter
Posted on December 9, 2010 at 1:08pmI agree. Specifically, be prepared for this:
A sell-off will ensue starting 12/15, so the investors can get out before capital gains taxes go up. This will cause a drop in the market by (my estimate) 10-20% by the end of the year. That will cause the downward spiral to recommense and we begin the second part of the Double Dip.
Republicans, knowing that they will have the high ground if they get to January without a bill will compromise, but only so much. Progressives will refuse to budge, meaning it’s a virtual certainty that the Double Dip will happen. Once the next Congress convienes in January, the deal will be much closer to what the GOP wanted in the first place, leaving even less wiggle room for the Dems.
Bottom line: The Double Dip is coming and the GOP will get everything it wants, possibly without having to pass 13 more months of unemployment to get it done.
…And the best part about it? The GOP compromised on the bill. It’s the Dems saying “No,“ regardless of their ”hostage” analogies. The GOP isn’t the part of “no,” the Dems are the People’s Democratic Socialist Party of Nyet.
Report Post »booger71
Posted on December 9, 2010 at 12:48pmWhy do the Libs hate the middle class :)
Report Post »Highland
Posted on December 9, 2010 at 1:16pmBecause they actually work for a living and try not to be dependent on the federal government for every aspect of their lives.
Report Post »catdragonwrangler
Posted on December 9, 2010 at 1:23pmMost Liberals were either born into very wealthy families that have learned how to AVOID taxes, or have been making their wealth on the backs of the American tax payer. They hate the “middle” class because they do not want anyone from outside their “class” to gain foothold in Washington or power at the polls.
Report Post »tobywil2
Posted on December 9, 2010 at 1:24pmThe “L I BS” don’t hate the middle class. It‘s all about power and control and you can’t control people who are self-sufficient, so they have to make the middle class dependent upon the government to obtain that power and control over the individual.
http://commonsense21c.com/
Report Post »HKS
Posted on December 9, 2010 at 12:47pmWould this be a bait and switch, or part of the pump up Obama plan?
Report Post »cubber
Posted on December 9, 2010 at 12:52pmTo me, they are all caving. Two goals. Reduce spending and reduce taxes. That’s it. BE PREPARED because they are not going to get it done in time.
Report Post »M31Sailor
Posted on December 9, 2010 at 1:03pmBarry’s playing both ends against the middle..There is no tax cut in this sham of legislation. No pay-go in the unemployment extension. . I say let’s ex this sham and let the incoming House prove their mettle.Do an actual Tax Cut, with no extension of benefits. Put the pressure on Barry and his merry band of thieves.
Sailor
Report Post »lecar
Posted on December 9, 2010 at 1:04pmThis is the true party of “NO”. They continue to say no to the will of the American people. It seems they are more interested in listening to the voice of illegal aliens in passing the DREAM act rather than voting to maintain the current tax rate.
Report Post »snowleopard3200 {mix art}
Posted on December 9, 2010 at 1:05pmThis is the part where the Progressives begin to dump Obama; pray the Secret Service can keep him and his family safe from all extremists in the future.
Report Post »pajamash
Posted on December 9, 2010 at 1:15pmExcellent!!!!! We can get rid of more of the dems in the next election after they foolishly allow all taxes to go up just to prove a point.
Report Post »tobywil2
Posted on December 9, 2010 at 1:18pmTHE LEFT ATTACKS MR. OBAMA?
Report Post »Mr. Obama has been in office almost 2 years and has failed to stamp out the last vestiges of individual liberty. According to spokespersons on the left, This is proof of incompetence. Ridiculous, in less than two years the man has done more to destroy the American Revolution than any other politician in our history. Don’t be duped by this media blitz! The real message is ” the enemy of your enemy is your friend . If the left is against Obama he deserves your support.” Don’t be one of the gullible who is taken in by this preponderance of propaganda.
http://commonsense21c.com/
snowleopard3200 {mix art}
Posted on December 9, 2010 at 1:23pm@Pajamash
Just as long as the Progressives are tossed at the same time as any remaining junk.
http://www.artinphoenix.com/gallery/grimm
Report Post »heavyduty
Posted on December 9, 2010 at 2:15pmAll we need to do is write our representatives and let them know how displeased we are about this rejection. But most of all we need to remember all this in 2012. Then let them know that this type of behavior is not going to be tolerated.
Report Post »TXPilot
Posted on December 9, 2010 at 2:17pmThe Communists are becoming restless, because they think your money is theirs to waste. They will take your money….they will take your freedom…..they will silence your voice…….How long until they fire up the ovens and begin to shove you and your family in?
Report Post »pajamash
Posted on December 9, 2010 at 2:30pmAgreed leopard, including the republican progressives! More spending won’t save us. More taxes won’t save us. Only a reduction of the monster our government has become will save us.
Report Post »ConsiderThis
Posted on December 9, 2010 at 2:32pmPelosi is obsessed with the DREAM thing, Reid’s pushing for online gambling and Obama, huh… the Democrats are just one great big train wreck.
Report Post »thepatriotdave
Posted on December 9, 2010 at 5:28pmSlightly off subject..
I wanted to say a quick word about Glenn’s show that is on as I write this. He see’s the pooh hitting the fan right now and I must agree. Whenever he mentions the media please remember this from a little known, but powerful Communist…
“We asked for freedom of the press, thought, and civil liberties in the past because we were in the opposition and needed these liberties to conquer. Now that we have conquered, there is no longer any need for such civil liberties.”
-Bukharin, 1917
Report Post »AnnMarie
Posted on December 9, 2010 at 6:14pmOK.. Enough of this… Wait until January and have the Repubs put forward their plan… The tax structure can be developed and put into place. Maybe this year the tax year will begin on January 15th… Enough of this nonsense debate… It is not going anywhere other than getting more spending to be included in the bill .
Report Post »