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House Reps. cave on short-term payroll tax cut extension

Faster horses

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A muted House Speaker John Boehner announced today that Republicans have decided to accept a short-term extension of the payroll tax cut, preventing a hike in taxes just nine days before the tax break expires for 160 million Americans.

House GOP leaders appeared to be adopting a compromise suggested by Senate Minority Leader Mitch McConnell to pass the two-month extension in exchange for the Senate appointing members to a conference committee, which will negotiate a longer-term solution. The proposal won a nod of approval from President Obama and Senate Majority Leader Harry Reid.

But Boehner was visibly unhappy with the deal.

"Kicking a can down the road for a couple of months does cause problems," he said at a news conference today.

House Republicans had originally wanted a one-year extension but faced mounting pressure from conservatives and their Senate counterparts to come to an agreement on the short-term deal.

"Sometimes it's politically difficult to do the right thing," Boehner said.

He admitted that the House Republicans' refusal to compromise on the short-term extension, which received backlash even from conservatives, politically "may not be the smartest thing in this world... but our members waged a good fight."

The deal entails a new bill with language protecting small businesses from a measure in the Senate bill that creates temporary new caps on the wages that are subject to payroll tax relief, a Republican aide said. Reid accepted the House Republicans' proposal late this afternoon.

The bill will be passed by unanimous consent, which would not require all the members to return for a vote.

Obama hailed the agreement and congratulated Congress members "for ending the partisan stalemate," but he also urged Congress to extend the payroll tax cut for the full year in 2012 "without drama or delay."

Earlier this afternoon, Obama assailed House Republicans for a "ridiculous Washington standoff" and stepped up pressure on them to pass a two-month extension bill that sailed through the Senate by a bipartisan vote.

"This isn't a typical Democrat versus Republican issue. This is an issue where an overwhelming number of people in both parties agree," the president said today. "How can we not get that done? Has this place become so dysfunctional that even when people agree to things, we can't do it? It doesn't make any sense."

The president, who delayed his vacation to Hawaii with his family because of the stalemate, was surrounded by individuals who wrote to the White House detailing how the end of the payroll tax break would affect their lives.

The White House pursued an aggressive campaign on social media to highlight the loss in benefits that millions of Americans will incur on Jan. 1 if Congress doesn't act. Americans, on average, would lose about $40 per paycheck if the tax cuts expire. On Wednesday, Obama himself personally took to Twitter asking Americans to share what that loss would mean to them.

"Forty dollars can make all the difference in the world," Obama said today, as he read out stories from Americans who had responded to his request. "Enough is enough. The people standing with me today cannot afford any more games."

Obama said more than 30,000 people have responded to the White House's "What 40 Dollars a Paycheck Means to American Families" campaign on Twitter, Facebook and whitehouse.gov.

House Republicans faced increasing pressure, even from their Senate counterparts, to find a compromise quickly. Outwardly, the House GOP leadership showed no outward sign of caving in, reiterating defiantly that they would not support the Senate bill.

But internally, even rank and file House Republicans were beginning to break away from Boehner and the GOP leadership's insistence that Congress approve a year-long deal to extend the payroll tax cut, instead urging the speaker to consider a short-term deal.

Rep. Sean Duffy, a freshman Republican from Wisconsin, today called on his leadership "to immediately bring up the Senate's two-month extension for an up or down vote."

"Middle class families deserve a Congress that will rise above the squabbling and ensure their taxes don't go up right after Christmas," Duffy wrote in a statement. "This is about preventing hardworking Wisconsin families from paying an extra $40 a week for the dysfunction in Washington, D.C."

Another House Republican freshman, Rep. Rick Crawford of Arkansas, wrote a letter to the speaker that asked for all options to be on the table as time runs short.

All week long, conservatives ranging from Sen. John McCain, R-Ariz., to Karl Rove took shots at Boehner and the House GOP for holding out for a long-term extension.

"There's no doubt this hurts the Republican Party, and that bothers me a great deal, as a Republican," Sen. John McCain, R-Ariz., said on CBS News this morning, adding that he feels bad for American taxpayers who are "innocent bystanders caught in the crossfire."

"This is really tragic for the American people. And I would say that next November, no incumbent is safe, nor should they be," McCain said.

Senior Democrats, meanwhile, pounced on Republicans for not agreeing to the two-month extension.

"Republicans have been arguing about process and politics," House Minority Whip Steny Hoyer said today. "The stakes are too high to be arguing about politics and process. The Republican contention that the two-month compromise somehow is unworkable is simply untrue."

If the payroll tax cut was not extended, 160 million American workers would have seen a 2 percentage point raise in their taxes, starting Jan. 1, raising the overall tax burden to 6.2 percent. Three million people who are receiving long-term unemployment benefits would also have seen their benefits drop. The gridlock would also impact Medicare, which would likely lower reimbursements to doctors.

The payroll tax cuts, passed by George W. Bush's administrations are popular on both sides of the political aisle. Washington experienced a similar gridlock in 2010 when the time came to renew the cuts.

Meanwhile, 2012 Republican presidential contenders expressed mixed views on the payroll tax extension debate.

Former Massachusetts Gov. Mitt Romney on Wednesday skirted the question of whether he supported Boehner's decision to reject the Senate bill, only saying, "My own view is had I been president, I would have been working with the leaders in both parties to see if there's not a way to reach common ground. My assessment of the circumstances is that there is common ground to reach in this matter. This should have been dealt with some time ago."

Newt Gingrich, however, took a widely different approach. Going into what appeared to be Speaker mode, the former Speaker jumped to give his Republican counterparts in the House some advice.

"Incumbent presidents have enormous advantages. And I think what Republicans ought to do is what's right for America," Gingrich said. "They ought to do it calmly and pleasantly and happily."

In a not-so-veiled jab against Romney, Gingrich said today that a candidate running for president ought not to run away from the issue.

"There's a concept called leadership," he said. "We need real leaders who have the courage to say what they really think. This is a mess. Washington's a mess. ... Think about how this muddle looks around the world. We can't even pass a tax cut?"

Conservatives had lashed out at House Republicans for creating a "fiasco" that put the party in a negative light and virtually hands over the win to Obama and Democrats.

"The GOP leaders have somehow managed the remarkable feat of being blamed for opposing a one-year extension of a tax holiday that they are surely going to pass. This is no easy double play," the Wall Street Journal stated in an editorial Wednesday. "Republicans have also achieved the small miracle of letting Mr. Obama position himself as an election-year tax cutter, although he's spent most of his presidency promoting tax increases and he would hit the economy with one of the largest tax increases ever in 2013. This should be impossible."

In an election year, a deadlock such as this could have significant negative consequences.

"Through all this analysis of the fiasco, there is a sense of doom for the Republican House. They have gone out on an ice floe with no obvious way back to shore," wrote conservative radio talk show host John Batchelor. "There is a strong possibility that President Obama will nurse the grievance against the Republican Party, and the Tea Party particularly, until the State of the Union."

ABC News' Jonathan Karl, Ann Compton and Amy Walter contributed to this report.
 
"We will ask the House and Senate to approve this agreement by unanimous consent before Christmas," Boehner said, indicating the chambers could pass the plan without objection so that members don't have to return to Washington from their holiday recess.

However, it was unclear if his Republican caucus would accept the agreement without objection. A GOP uprising during a caucus conference call Saturday had caused Boehner to reject the plan the Senate passed last week with strong bipartisan support, setting up this week's political showdown in the final days before the payroll tax cut expired.

In announcing the deal to reporters Thursday, Boehner called the House GOP's prior opposition to the Senate plan the right thing to do, even if politically questionable.

"It may not have been politically the smartest thing in the world," Boehner said, but the end result was "we were able to fix what came out of the Senate."


Still not a done deal...Boehner had agreed to a deal before- before he backed water and flipped... And with that crew of rogues he's dealing with that think of their political gain first above the needs of the countries- anythings possible... It wouldn't surprise me at all to see one object...

But I bet old Boehner is drinking double shots tonight!! Maybe triples if he missed his normal daily 4 PM Happy Hour.... :wink: :lol:

And Obama and the Dems are dancing with joy from the ammo that Boehner and the TeaPartyiers stupidly gave them....


Why the winds are shifting toward Obama
By David Gergen, CNN Senior Political Analyst
updated 6:52 PM EST, Thu December 22, 2011

Cambridge, Massachusetts (CNN) -- Even though House Republicans are now wisely folding their tents, their disarray this week over extending a payroll tax cut has left a sour taste at year's end in Washington, contributing in no small part to an even bigger political story: the resurrection of President Obama and his fellow Democrats heading toward the 2012 elections.

After the debt ceiling debacle of last summer, the conventional wisdom among many political analysts was that Obama would go the way of President Jimmy Carter, that Republicans would lose a few seats in the House but retain control, and that the GOP would surge into power in the Senate. In short, Republicans were looking for a clean sweep.

Who believes that now? Obama is still highly vulnerable and could lose, but the CNN poll coming out of the field this week reveals a remarkable turnaround, especially in the past month.

In a mid-November survey, when asked which candidate they were more likely to support, registered voters gave Mitt Romney a lead of 4 percentage points over Obama, 51% to 47%. The mid-December survey found an 11-point switch; Obama now has a 52%-45% edge over Romney. Against Newt Gingrich, Obama has a 16-point lead, 56%-40%. (Ironically, the one Republican candidate who does as well against Obama as Romney is Rep Ron Paul, trailing by the same 52%-45% margin.)

It is too early to tell how much Democratic prospects for the Senate and House have improved, but senior Republicans are worried. John King pointed out one straw in the wind Wednesday night on CNN's "AC360.": the Massachusetts Senate race, where a poll has shown Democratic populist Elizabeth Warren grabbing an unexpected lead over Republican populist Scott Brown. Only a few months ago, the Brown forces were supremely confident.


GOP lawmaker: Senate plan 'no solution' Brown has seen how much danger the payroll tax mess can pose for his re-election and was one of the first to condemn House Republicans for rejecting a Senate compromise that had overwhelming, bipartisan support.

For Brown and other GOP candidates in blue and purple states, the hard-liners in the House are playing directly into a narrative that Democrats have been promoting for months: that Washington is broken because the GOP has become hostage to the tea party. With sentiment toward the tea party now running 49%-33% unfavorable in CNN polling, that is potent stuff.

The truth about the breakdown in Washington is much more complicated (Democrats deserve ample blame, too), but Republican congressional leaders have so mishandled the payroll tax issue that they have made it easy for the charge to stick. No wonder the White House is quietly chortling and senior Republicans like GOP leader Mitch McConnell pressed hard for House Republicans to cave on the payroll tax cut.

As The Wall Street Journal said in its scathing editorial, the GOP has also strengthened Obama's arguments that he is more on the side of middle-class taxpayers than Republicans are. No wonder the White House is quietly chortling, and Senate Majority Leader Mitch McConnell is calling on House Republicans to pass the two-month extension.

There are two other major forces at work that have been lifting Democratic hopes. One is the quality of the Republican presidential race. With less than two weeks left before the Iowa caucuses, as The Boston Globe reports Thursday, it is apparent that no one has captured the imagination of GOP voters. We are back to where we started: a sense the field is weak and people wondering whether a Jeb Bush or a Chris Christie will get off the sidelines.

All primary campaigns draw candidates toward the extreme end of their parties, but this year, with so many debates, there has been a danger all along for Republicans that moderates and independents would also be driven off. (In the CNN poll, moderates now give Obama a sizable lead against every GOP candidate.)


The other force driving the change in outlook is Obama himself. What he does best, as we have learned, is campaign. In domestic affairs, he has been far better at that than governing. He and his team apparently made a decision after the debt ceiling fight that he should be much less involved in leading Washington and instead hit the campaign trail. From my perspective, that's not good for the country -- witness how appallingly little has been accomplished this fall on jobs and the deficits -- but it seems to be working for his re-election.

None of this is to say that Obama and Democrats have become clear favorites for next fall. The fluidity we have seen among Republican primary voters may well show up in the general electorate. As Romney has been arguing, the GOP is likely to close its ranks more fully once a nominee has been crowned. The improving tone of the economy -- also a factor for Obama -- could well be short-lived: As The New York Times reported Thursday, economists tend to think that growth could slow again next year. And that dark cloud called the euro zone is still hovering.

Even so, we are witnessing an important change in the political landscape -- and it could be lasting. Republicans well remember the mid-1990s when they seized power in Congress and Speaker Newt Gingrich went mano-a-mano with President Bill Clinton. For a while, Gingrich had the upper hand, but Clinton then outmaneuvered him on two governmental shutdowns -- and when the momentum turned in Clinton's favor, he rode it to an easy re-election. No one should doubt that could happen again.
 
What I saw just minutes ago on PBS, an analyst said that Boehner would garner enough Dem. votes to make it a done deal irregardless of the Rep.'s voting against it. I guess we'll see. Just who is the leader of this Republican dominated house??? :wink:
 
TSR said:
What I saw just minutes ago on PBS, an analyst said that Boehner would garner enough Dem. votes to make it a done deal irregardless of the Rep.'s voting against it. I guess we'll see. Just who is the leader of this Republican dominated house??? :wink:


A Liberal.......he reminds me of Bush and his liberal spending, at the expense of the Middle Class.


Time for some true conservatives to "right the boat"

vote out all Liberal/Progressive Republicans, like the Tea Party began to do in 2010.....if you don't, the US will be "lost" within 10 years, due to these Liberals and progressives......
 
hypocritexposer said:
TSR said:
What I saw just minutes ago on PBS, an analyst said that Boehner would garner enough Dem. votes to make it a done deal irregardless of the Rep.'s voting against it. I guess we'll see. Just who is the leader of this Republican dominated house??? :wink:


A Liberal.......he reminds me of Bush and his liberal spending, at the expense of the Middle Class.


Time for some true conservatives to "right the boat"

vote out all Liberal/Progressive Republicans, like the Tea Party began to do in 2010.....if you don't, the US will be "lost" within 10 years, due to these Liberals and progressives......

Well if the "socalled conservative" Tea Party keeps operating like they did on this issue- going against 3/4th's of Congress- the Administration- and the majority of the American voters (thinking they alone know better) -just so they can play partisan politics games - they will have went the way of the dinosaurs long before 10 years......
 
Oldtimer said:
hypocritexposer said:
TSR said:
What I saw just minutes ago on PBS, an analyst said that Boehner would garner enough Dem. votes to make it a done deal irregardless of the Rep.'s voting against it. I guess we'll see. Just who is the leader of this Republican dominated house??? :wink:


A Liberal.......he reminds me of Bush and his liberal spending, at the expense of the Middle Class.


Time for some true conservatives to "right the boat"

vote out all Liberal/Progressive Republicans, like the Tea Party began to do in 2010.....if you don't, the US will be "lost" within 10 years, due to these Liberals and progressives......

Well if the "socalled conservative" Tea Party keeps operating like they did on this issue- going against 3/4th's of Congress- the Administration- and the majority of the American voters (thinking they alone know better) -just so they can play partisan politics games - they will have went the way of the dinosaurs long before 10 years......

The Teaparty wanted to pay for the tax reduction with spending cuts not just robbing Social Security.
 
"Sometimes it's politically difficult to do the right thing," Boehner said.

with the current demands for handouts and the media hacks spin it seems short of electing Ron Paul, all everyone will do is cave into the political pressure.

he scares he hell out of me, and our country may not survive the correction but he may be the only way to get what the tea party wants,... fiscal responsibility.
 
Oldtimer said:
hypocritexposer said:
TSR said:
What I saw just minutes ago on PBS, an analyst said that Boehner would garner enough Dem. votes to make it a done deal irregardless of the Rep.'s voting against it. I guess we'll see. Just who is the leader of this Republican dominated house??? :wink:


A Liberal.......he reminds me of Bush and his liberal spending, at the expense of the Middle Class.


Time for some true conservatives to "right the boat"

vote out all Liberal/Progressive Republicans, like the Tea Party began to do in 2010.....if you don't, the US will be "lost" within 10 years, due to these Liberals and progressives......

Well if the "socalled conservative" Tea Party keeps operating like they did on this issue- going against 3/4th's of Congress- the Administration- and the majority of the American voters (thinking they alone know better) -just so they can play partisan politics games - they will have went the way of the dinosaurs long before 10 years......


I think you missed something somewhere. You might want to work on your math word problems.

If Congress has only 9% of all Americans who are happy with the job they are doing, how many people are not happy with what congress is doing? 91%

Which is a majority 9% or 91%? 91%

If the Tea Party Representatives are voting against what 3/4 of Congress (which has a 9% approval rating) and the Administration (which has the poorest approval rating of any previous President) want to continue doing, will they be representing the majority or the minority of Americans? Majority

[/b]
 
okfarmer said:
Oldtimer said:
hypocritexposer said:
A Liberal.......he reminds me of Bush and his liberal spending, at the expense of the Middle Class.


Time for some true conservatives to "right the boat"

vote out all Liberal/Progressive Republicans, like the Tea Party began to do in 2010.....if you don't, the US will be "lost" within 10 years, due to these Liberals and progressives......

Well if the "socalled conservative" Tea Party keeps operating like they did on this issue- going against 3/4th's of Congress- the Administration- and the majority of the American voters (thinking they alone know better) -just so they can play partisan politics games - they will have went the way of the dinosaurs long before 10 years......


I think you missed something somewhere. You might want to work on your math word problems.

If Congress has only 9% of all Americans who are happy with the job they are doing, how many people are not happy with what congress is doing? 91%

Which is a majority 9% or 91%? 91%

If the Tea Party Representatives are voting against what 3/4 of Congress (which has a 9% approval rating) and the Administration (which has the poorest approval rating of any previous President) want to continue doing, will they be representing the majority or the minority of Americans? Majority

[/b]



OT has a hard time fathoming that the Tea Party represents the majority of voters, yet, is represented by the minority of the elected......but he wants what the Tea Party advocates......
 
Steve said:
"Sometimes it's politically difficult to do the right thing," Boehner said.

with the current demands for handouts and the media hacks spin it seems short of electing Ron Paul, all everyone will do is cave into the political pressure.

he scares he hell out of me, and our country may not survive the correction but he may be the only way to get what the tea party wants,... fiscal responsibility.

I think American's are a pretty resiliant bunch and we will thrive again once the financial bleeding stops- but untill all the unconstitutional spending stops we are stagnant or going down.
 
So OT - do you not understand that this is NOT a tax reduction? It is a part of your contribution to Social Security and a further deflation to the ability for the Soc Sec trust fund to stay afloat.
Explain how this is in the best interest of the solvency of that fund.
 
It will be all settled today, then congress will go home. When they come back they will wrangle for two months, people will watch them like we do ants on an ant hill. Then at the last minute the tax deduction will be extended for a year, maybe another one percent will even be added.

The real goal is to knock the Social Security trust fund in the head. Do you remember when they said "this is your money"? If it can be claimed as "government money" governments bureocrates can tell retired people what they are, or not entitled to.

There are other ways they could try to stimulate the economy, Increasing the standard dedution is one, Just giving every tax payer $1000 would do the same. Bush's $600 stimulus didn't do anything, just made people willing or able to pay a little more for what they needed, the tax break didn't do anything more. This has caused inflation. A recession is not cured by creating inflation, but by increasing the movement and the flow of existing money.

If people would learn to stop to look, and to think for themselves, the people in government wouldn't be able to pull the wool over our eyes as they do.
 
Maybe an enlightened liberal can explain which is better for the working class, a two month stop gap measure, (political gimmick), or a one year extension which would have extended the payroll tax cut past election?
 

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