Politics

Senate Democrats and House Republicans Compromise on Taxes… but Obama Kills It

Surprise, surprise… Congress reaches a bipartisan deal and Barack Obama KILLS it.

Will the media tell America about President Obama’s obstinance? Will the media report that the President is impeding progress? Don’t hold your breath.

Senate Democrats and House Republicans finally found common ground on taxes and were moving forward with a deal that both seemed satisfied with when President Obama stepped in and made sure the deal would never happen… now who’s being an obstructionist?


 

President Obama wrecked a $440 billion tax cut deal between Senate Democrats and House Republicans Tuesday just as negotiations were wrapping up.

More than 50 expired and expiring tax breaks — including a cherished research and development tax credit for businesses, charitable deductions and an earned income credit for low income workers — must be extended by Congress by the end of the year. Otherwise, businesses and individuals won’t be able to claim them on this years tax returns.

Republicans want to make several of the cuts permanent, but Democrats argue permanent cuts are too expensive and would prefer to extend all of them for another two years. (RELATED: Congress Set To Expend More Than 50 Tax Breaks)

taxSenate Majority Leader Harry Reid and Republican Rep. Dave Camp, Ways and Means Committee chair, were about to strike a compromise Tuesday that would have made ten of the cuts permanent and extended the rest. But President Obama intervened and threatened a veto, saying the deal favored corporations at the expense of the working class.

Most of the proposed permanent cuts would have benefitted businesses, although Republicans threw in a few favored by Democrats, including a deduction for state and local sales tax favored by Reid, a break for commuters and a break that helps students pay college tuition, reported the Wall Street Journal.

Two of the Democrats favorite cuts were not included because of Obama’s recent executive order granting amnesty to an estimated five million illegal immigrants, reported The New York Times. Republicans announced Friday they would not make the child tax credit or the earned income credit permanent, because they could be claimed by the newly legal immigrants.

The deal also would have phased out a wind energy credit hated by Republicans.

The White House was “livid” over the deal, Democratic aides told The Hill. “The president has consistently stated his opposition to giving hundreds of billions of dollars of tax cuts primarily geared to corporations while leaving middle class families and those struggling to get into the middle class behind,” White House Council of Economic Advisers Chairman Jason Furman told The New York Times.

The president’s veto threat angered Republican aides, who told The New York Times he’s reversing prior support for some of the cuts, such as the research and development tax credit for businesses.

Congress now has until December 11, when it’s scheduled to wrap up for the year, to come up with a new deal. One option is for Republicans to push through a very short term extension of all of the cuts through 2014, and then revisit the issue when they’ve gained the majority.

Source

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Onan Coca

Onan is the Editor-in-Chief at Liberty Alliance media group. He's also the managing editor at Eaglerising.com, Constitution.com and the managing partner at iPatriot.com. You can read more of his writing at Eagle Rising.
Onan is a graduate of Liberty University (2003) and earned his M.Ed. at Western Governors University in 2012. Onan lives in Atlanta with his wife and their three wonderful children.

Don't Miss Out!!

Get your daily dose of Eagle Rising by entering your email address below.

STAY IN THE LOOP
Don't miss a thing. Sign up for our email newsletter to become an insider.

Send this to friend