House Democrats rejected President Obama’s deal with Republicans to extend Bush-era tax cuts as a giveaway to the wealthy and threatened to kill their own president’s proposal unless he agrees to alter it. Denouncing the deal and harshly criticizing Obama during a closed-door caucus meeting, angry lawmakers chanted “Just say no!” then voted to reject the proposal he announced at the White House Monday to extend tax breaks to all income levels, reduce the estate tax and provide another 13 months of jobless benefits.
The Senate is expected to take up the measure as early as this weekend.
But House Speaker Nancy Pelosi, D-Calif., may keep the measure off the House floor until it is changed, an aide said. That would create an unusual civil war between a president and lawmakers from his own party.
“We’ve got our fight face on,” said Rep. Gary Ackerman, D-N.Y., a staunch critic of the plan, after the meeting. “We know what the numbers are and we’re prepared to go to the mat. Democratic voters paid to see us fight and that is what we are going to do.”
While liberal Democrats oppose the bill, the $900 billion package of tax cuts and jobless benefits has the support of most Republicans and dozens of moderate Democrats and could pass the Democratic-controlled House, but only if Pelosi permits a vote.
Moderate Democrats were angered when their more liberal counterparts approve a nonbinding resolution Thursday demanding that the package not be brought for a vote in the House unless Obama agreed to unspecified changes.
“We are allowing the liberal wing of the Democratic caucus to hold these critically needed tax cuts hostage,” Rep. Dan Boren, D-Okla., said.
Liberal Democrats, meanwhile, are upset that the deal Obama struck would prolong the Bush-era tax breaks for individuals earning more than $200,000 and couples making more than $250,000. Many Democrats would prefer to restrict the tax cuts to those making $1 million or less a year. And House liberals are fuming over a provision that would reduce the estate tax from the 2009 level from 45 percent to 35 percent and exempt any private fortunes of less than $5 million per person or $10 million per couple. The exemption in 2009 was $3.5 million for individuals and $7 million for couples. In a statement released after the vote, Pelosi referred to the package as the “Senate Republican tax provisions” and said she would keep negotiating with the White House in the days ahead “to improve the proposal before it comes to the House floor for a vote.”
But there may be no room for compromise.
House Republicans are already wary of the proposal because of its $900 billion price tag.
“I would say that Republicans’ support for this deal is tenuous at best and any efforts by liberals to make the tax burden heavier would make Republican support less likely,” Republican Conference Chairman Mike Pence, R-Ind., told The Washington Examiner.
Vice President Biden told Democrats Wednesday that the proposal cannot be changed.
A White House spokeswoman on Thursday seemed more flexible. “We are confident that the major components of the tax framework that we fought for will remain in the final package brought to the floor and ultimately passed by Congress,” Amy Brundage said.
