Republicans are for cutting taxes. That is the core of their brand. No matter what else the GOP does wrong (TARP, prescription drug benefits, amnesty etc.), voters can always count on Republicans to be in favor of cutting taxes. But now they can’t even do that right.
One hundred and sixty million Americans are facing a $111 billion tax hike come January 1st. Republicans should be in a bidding war with Democrats to provide even more relief. Instead, they are doing the opposite. They are fighting to let taxes go up on all Americans. When was the last time that happened.
Yes, there are some decent policy reasons why the payroll tax cut should not be extended. Yes, it is a sugar-high tax cut that will not significantly add to long term economic growth. All temporary tax cuts are. No, it is not paid for. But neither was the temporary extension of the Bush tax cuts last December. Republicans can’t first insist that the Bush tax cuts don’t need to be paid for and then turn right around and say the payroll tax must be. That position has no credibility.
Last night, the Democrat plan to temporarily cut payroll taxes by $256 billion and pay for it with a permanent surtax on millionaires failed by a 51-49 vote (60 votes were needed to proceed). The Republican proposal, which cut taxes by half as much, only got 20 votes, far less than leadership hoped. More Republicans voted against the Republican plan than voted for it. This will strengthen the Democrats’ bargaining position in the final round of negotiations.
If Republicans want to get up off the mat and win this fight, they need to get back in touch with their tax-cutting roots. See the Democrats temporary payroll tax cut and raise them to a permanent cut.
Around the Bigs
The Sunlight Foundation, Another renewable energy loan recipient hires lobbyists, has fundraising ties to Obama: Abound Solar, another participant in the Department of Energy’s loan guarantee program, has hired a lobbyist to deal with the fallout from Solyndra’s bankruptcy. Abound investor and billionaire heiress Pat Stryker, who Forbes ranks as the 331st richest American, has bundled over $100,000 for President Obama.
The Washington Examiner, House GOP looks to extend tax cut, jobless benefits: House Republican leaders are working on a payroll tax cut proposal similar to one unveiled by Senate Republicans earlier this week which paid for a year’s extension of the current employee tax rate by freezing federal worker pay, shrinking the federal workforce, and means-testing welfare programs.
The New York Times, For Jobless, Little Hope of Restoring Better Days: A new study to be released Friday by the John J. Heldrich Center for Workforce Development shows that just 7 percent of those who lost jobs after the financial crisis have returned to or exceeded their previous financial position and maintained their lifestyles.
The Los Angeles Times, Senate votes for new Iran sanctions, defying White House: The United States Senate unanimously rebuked President Obama yesterday, voting 100-0 to approve new sanctions on Iran over White house objections.
USA Today, GM offers to buy back Chevrolet Volts from fearful owners: General Motors announced yesterday, that it will buy a Chevrolet Volt back from any owner who is afraid the plug-in extended-range electric car will catch fire.
Campaign 2012
Gingrich: A transcript from a 2007 Newt Gingrich interview, published on Freddie Mac’s website, directly contradicts the story Gingrich about why he took over $1.5 million from Fannie and Freddie Mac over the last decade. Gingrich claims he took the money to provide history lessons to Freddie and that he criticized their business mode. But the 2007 interview shows, that even as the housing bubble was beginning to burst, Gingrich was saying, “”While we need to improve the regulation of the GSEs, I would be very cautious about fundamentally changing their role or the model itself.”
Romney: Mitt Romney’s presidential campaign is stepping up its efforts in Iowa, including a large television ad buy that begins airing today. “I think this has always been our strategy: Don’t spend a lot of money here, don’t spend a lot of time here,” David Kochel, Romney’s top Iowa adviser, told The Washington Examiner. “But we’re now less than five weeks out. It’s time to make our pitch.”
Righty Playbook
RedState‘s Erick Erickson writes, “Here’s the funny thing about Jon Huntsman. His record as a governor is more conservative than Newt Gingrich and Mitt Romney combined. He is more pro-life than either of them. He is more economically wedded to the free market than either of them. He has better foreign policy experience than either of them. Huntsman should be a conservative hero in this race.”
The Enterprise Blog‘s James Pethokoukis posts a chart showing everything you need to know about today’s November jobs report.
The Heritage Foundation‘s Bob Moffit makes the case for getting rid of the Medicare doctor payment formula.
Lefty Playbook
The AFL-CIO’s blog celebrates Frank Luntz statement that: “I’m so scared of this anti-Wall Street effort. I’m frightened to death.”
At The New Republic, Ruy Teixeira pushes back against claims that Obama has to choose between professionals, millennial, and blue collar voters.
Slate‘s David Weigel makes the case that Republicans are entirely to blame for the failure of the Super Congress.
