Turn of Phrase - GOP Caves and Agrees to Extend Payroll Tax Cuts

"It may not have been politically the smartest thing in the world."

- House Speaker John Boehner, commenting on the the initial decision of House Republicans to oppose legislation that would extend existing payroll tax cuts for two-months and enable additional Congressional negotiation of the issue.

After overwhelming negative public response and pressure from both Democrats and Senate Republicans, House Republicans have reversed field and indicated they will pass the stop-gap proposal that passed the Senate by an 89-10 margin.

Resistance from the Tea Party element of the Republican party held the bill up for several days and threatened the continuity of payroll tax relief for 160 million workers, as well as the extension of unemployment benefits for nearly 2 million Americans without jobs.

From a political perspective, the Congressional struggle to pass legislation that almost everyone agrees on perpetuates the general image of Washington dysfunction. More importantly, with the 2012 election season already underway, the incident ironically appears to leave Republicans taking their typical obstructionist position while President Obama fights for tax cuts.

The incident revealed a deep divide among Republicans, and the absence of a clear consistent position on the bill highlighted the lack of cohesive leadership within the party. Republican failure to support the bill initially, followed by their subsequent reversal of policy, made the party look petty, weak, and disorganized. It looks as though Speaker Boehner, who is known for his propensity for easy weeping, may finally have something to cry about.


Related Post: Republican Tax Cut Rejection Paves Way for Obama

Turn of Phrase - Senator Alan Simpson Calls Out Congress

"This is B.S and mush, and the people are sick and tired of it."

- Respected former Senator Alan Simpson, (R) Wyoming, speaking on MSNBC about Republican House members rejecting a Senate tax cut proposal. Simpson was in Congress during the time before politics completely crippled government.


Related Post: Republican Tax Cut Rejection Paves Way for Obama

Republican Tax Cut Rejection Paves Way for Obama

Republican House Speaker - John Boehner

House Republicans jeopardized an extension of the payroll tax that expires on January 1 by rejecting a bipartisan proposal that passed the Senate with an overwhelming 89-10 vote.

These rebel Republicans have risked doing real world harm by potentially increasing taxes on 160 million Americans, and they have damaged themselves politically, putting the President in position to take a strong but reasonable stance against them.

The proposal sent from the Senate to the House is far from perfect but it buys time for further negotiation,  guaranteeing for the next two months the uninterrupted continuation of a payroll tax break that currently leaves an extra $1,000 per year in the bank accounts of average taxpayers.

In rejecting the Senate proposal, House Republicans demonstrate ongoing and unpopular legislative obstructionism and they further perceptions of general Congressional impotence. Their failed leadership has fostered the creation of a political morass, but it has left us with a few clear conclusions.

1. Even when almost everyone on both sides of the aisle agrees something is right for the country, Republicans will still oppose it if they think it complicates things for the President. 
2. If there was uncertainty about the dysfunction that exists within the Republican party, the total absence of coordination shown between House and Senate Republicans should remove any doubt.
3. Democrats HAVE negotiated the current proposal in good faith by:
• Dropping from the bill their original plan to pay for the tax cut extension by adding a 1.9% surtax to millionaire incomes
• Adding to the bill the "fast tracking" of the Keystone Pipeline (which Republicans support but the President strongly opposes)
4. Republicans will sell the organs of their elderly mothers to protect or even add new tax breaks for the wealthiest Americans, but they won't accept a reasonable proposal to extend tax cuts that already exist and benefit 160 million Americans, most of whom are solid middle class citizens.
5. House Republicans have ceded important political ground to President Obama, who can now begin the 2012 election year by showing Americans his commitment to fighting for middle class tax cuts and opposing this do-nothing Congress that sports the worst approval ratings in history.

Turning the extension of the payroll tax cuts into a slippery political football is a huge misstep on the part of Congressional Republicans, and the Democrats will most certainly use this incident to their advantage in the 2012 Presidential and Congressional elections.


Related Post: Obama Taunts Republicans Over Payroll Tax Cut

Turn of Phrase - Obama Taunts Republicans Over Payroll Tax Cut

Photo: Phillip Scott Andrews, New York Times

"How can you fight tooth and nail to protect high-end tax breaks for the wealthiest Americans, and yet barely lift a finger to prevent taxes from going up for the 160 million Americans who really need the help?"

- President Obama on Monday, accusing the GOP of inconsistency in their commitment to tax breaks.

In an attempt to boost the economy, Congress passed legislation at the end of 2010 that temporarily reduced the payroll tax, providing a savings of $1000-$1500 per year for most Americans. That tax cut is scheduled to expire at the end of this year, and while both Democrats and Republicans generally favor extension of the tax relief, there is great debate over how to fund the tax cuts.

The President quite correctly has expressed confusion over the Republican doggedness surrounding the proper funding of the payroll tax break which benefits almost all American families, while they have historically taken a "must pass at any cost" approach to ensuring the continuation of the Bush tax cuts, which positively impact only the wealthiest Americans.