I think everyone has heard about the debacle about trying to pass the Payroll Tax Cut. This is a tax cut which benefits 160 million middle-class Americans. This tax cut also gives benefits to businesses when hiring people, trying to give incentive to real “job creators” and not just calling rich people “job creators” like the Republicans do. Not passing the Payroll Tax Cut also impacts doctors who see senior patients who are on Medicare.
However, Boehner took a hard stand early on in negotiations saying that they would not pass the extension of the Payroll Tax Cut without finding equivalent amount of money from the budget to cut as well. This may seem like a logical approach EXCEPT why didn’t he take the same stand when passing the Bush tax cuts for the rich??? So basically they are saying tax cuts for the rich are sacred, but tax cuts for the middle class is, well, not as important.
The Senate provided a proposal which would be a two-month extension, so that starting January 1, 160 million Americans wouldn’t suddenly see their taxes increased, so that Congress can work out the details of making the extension valid for the entire year. However, Boehner refused to support this temporary measure, so at the moment, starting January 1, everyone will see a tax increase.
Everyone is expecting the Payroll Tax Cut to eventually be extended. Congress may even make the extension retroactive to January 1. However, this still impacts millions of people who will see less take home pay starting January 1 until they can get the benefits from the retroactive tax cut. This obviously shows where the Republicans priorities are…
From one of the referenced articles, Hoyer D-Md tried to bring up the two-month extension before Congress recessed:
“Mr. Speaker!” Hoyer, D-Md., shouted. “Mr. Speaker, we’d like to ask for unanimous consent that we bring up the bill to extend the tax cut for 160 million Americans as you walk off the floor Mr. Speaker.”
As the procession and Fitzpatrick left the chamber, Hoyer voiced his objections.
“You’re walking out!” he complained. “You’re walking away just as so many Republicans have walked away from middle class taxpayers, the unemployed, and very frankly as well from those who will be seeking medical assistance from their doctors, 48 million senior citizens.”
As he yielded to Van Hollen, the House studio cameras went dark and the microphones were cut off, silencing the House Democrat.
“You have an extreme right-wing element in the House of Representatives that has hijacked the process,” Van Hollen, D-Md., said afterwards. “They are afraid of bipartisanship.”
Update: The Republicans realized they were in such a poor bargaining and image position that they caved. Nothing like the fear of losing your job (ie, being elected out of office) to do the right thing instead of playing politics…References: