Last night, the House of Representatives passed the Middle Class Tax Relief and Job Creation Act by a bipartisan 234-195 vote margin. The bill prevents a $111 billion tax hike on virtually every working American, offsets the revenue reduction by cutting spending and increasing fees on Fannie Mae and Freddie Mac, and forces President Obama to make an up-or-down decision on the Keystone XL pipeline.
At their press conference after the vote, House Republicans unveiled a countdown clock, reading: “If the Senate doesn’t act, middle class taxes increase in: 18 days.” The clock is almost identical to the one White House press secretary Jay Carney introduced last week, which tried to pressure “Congress” not the Senate. Obama wasted no time issuing a veto threat on the House bill, but his leverage is limited.
Senate Majority Leader Harry Reid, D-Nev., is frightened that the House could pass both an end-of-the-year spending bill and the payroll tax cut extension, then skip town before Christmas, leaving Democrats with take-it-or-leave-it offers on both issues. Desperate to avoid that situation, Reid has ordered Senate Appropriations Committee Chairman Daniel Inouye, D-Hawaii, to slow walk his work on the spending bills, which must be passed before this Friday to avoid a government shutdown. Inouye told Politico: “I hate to put it that way because that is not how I do business.”
But threatening government shutdowns in order to raise taxes is exactly how Reid does business. The Democrats have painted themselves into a corner by making a millionaire surtax their top priority. Now that Republicans have united around a series of spending cuts to offset the missing revenue, the end deal on the payroll cut is in sight. Republicans will probably have to drop their Keystone XL provision and Democrats will have to drop their millionaire’s surtax. Obama probably would have nixed the pipeline anyway. Under this deal, conservatives will have secured lower taxes and lower spending. That is a big win.
Around the Bigs
The Washington Examiner, Congress to investigate Occupy’s use of McPherson Square: House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., wrote a letter to Interior Secretary Ken Salazar yesterday, alleging that Occupy DC’s presence in the park “appears to violate the law” and questioning why the National Parks Service has not cleared out the makeshift tent city.
The New York Times, Groups Sue to Block Auction of Offshore Oil Leases: Environmental activists filed suit in Federal District Court in Washington to stop the first attempted auction of offshore petroleum leases in the western Gulf of Mexico since the Deepwater Horizon disaster in 2010.
The Wall Street Journal, Euro Flat, but Further Fall Expected: After tumbling overnight to its lowest level against the dollar in nearly a year, the Euro held steady on Asian markets today. But analysts predict the Euro will drop again as the European Union debt crisis continues.
The New York Times, U.S. Safety Board Urges Cellphone Ban for Drivers: The National Transportation Safety Board is urging states to ban all cellphone use by drivers, even wireless hands free devices.
The Wall Street Journal, Criminal Code Is Overgrown, Legal Experts Tell Panel: The federal criminal code has grown so large it ensnares everyday citizens who have no idea they are violating the law, a bipartisan group of legal experts told the House Judiciary Committee Tuesday.
Campaign 2012
National Polling: A new NBC News Wall Street Journal poll finds New Gingrich with a double digit lead over Mitt Romney, 40% to 23%. But half of all voters say they would never vote for Mr. Gingrich if he were the Republican nominee. Gingrich was only polling at 13% in the same poll last month.
Paul: Ron Paul is closing in on the frontrunners in Iowa and New Hampshire, according to new Public Policy Polling polls. In Iowa, Paul trails Newt Gingrich by just one point and in New Hampshire he trails Romney by two.
Romney: Mitt Romney’s New Hampshire staff tells The Washington Examiner‘s Michael Barone there is no way Romney will finish anything but first in the Granite State. “We’re not going to lose in New Hampshire,” state coordinator Jason McBride said.
Gingrich: Newt Gingrich’s political director in Iowa, Craig Bergman, was forced to resign just one week after he was hired by Gingrich when it was revealed Bergman once called Mormonism a cult.
Righty Playbook
The Enterprise Blog‘s Kenneth Green flags a USA Today story on how environmental regulations are causing home energy prices to rise and writes: “There’s no doubt that clean air has benefits, but there’s also no doubt that clean air comes with a price tag.”
Power Line‘s John Hinderaker explains how Attorney General Eric Holder’s voting rights speech yesterday is part of a larger conspiracy with far-left organizations to enable voter fraud.
RedState‘s Daniel Horowitz says the defeat of Ron Johnson for vice chairman of the Senate Republican conference should serve as a wakeup call to conservatives: “Despite our hard work during the 2010 elections, we have not done enough to elect conservative warriors to Congress.”
Lefty Playbook
The Washington Post‘s Greg Sargent reports that 14 Democratic Senators sent a letter HHS secretary Kathleen Sebelieus demanding that she identify the “scientific evidence” supporting her decision not to allow the sale of the “morning after” pill to girls under 17 without a prescription.
Talking Points Memo
reports that the Obama White House is rooting for the longest Republican primary possible.
The Huffington Post‘s Sam Stein outlines the five paths the Obama campaign has to reelection.
