It's understandable to have a sense of deja vu when it comes to the fight in Washington over a payroll tax break. In December, Democrats pushed to leave the tax cut in place; Republicans balked; and it led to a fairly intense showdown the week before Christmas. Dems won, but the victory was temporary -- the agreement only extended the break through February.
The sequel is shaping up to be even more contentious. In his weekly address over the weekend, President Obama explained that if the current policy expires in two weeks, the typical American worker would have about $1,000 less in his or her pocket over 2012.
"Congress needs to stop this middle class tax hike from happening," he said. "Period. No drama. No delay. And no ideological side issues that have nothing to do with this tax cut. Now is not the time for self-inflicted wounds to our recovery."
Congressional Republicans don't quite see it that way. How to pay for the bill, not surprisingly, is the most difficult issue, but GOP lawmakers are also pushing related measures, including "mandatory high school equivalency program and possible drug testing for beneficiaries," as well as shrinking unemployment eligibility to 59 weeks.
In other words, Republicans are willing to consider a payroll tax break they admit they don't want -- it's another one of those issues Republicans supported right up until Democrats said they agreed -- but only if Dems agree to make conditions harder on those struggling most.
Democrats have already given ground -- a surtax on millionaires and billionaires has reportedly been taken off the table -- but Dems aren't willing to go nearly as far as Republicans would like. Since Democrats also believe they have the upper hand in the negotiations, it will be that much more difficult for the GOP to push them around.
This was supposed to be much easier. After a bitter fight in December, GOP leaders were chastened and eager to avoid another defeat. As of mid-January, the prospects for an agreement looked pretty good, in large part because Republicans didn't want to be on the hook for a middle-class tax increase in an election year.
But the process has deteriorated since, with rank-and-filed GOP lawmakers coming up with new demands.
At issue is a package with a price tag of nearly $200 billion, which would include a payroll tax cut for the rest of the year, an extension of emergency unemployment benefits, and the Medicare "doc fix" on physician reimbursements. Talks will continue today, and if they go poorly, don't be surprised if Congress scraps its Presidents' Day recess.
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Talks will continue today, and if they go poorly, don't be surprised if Congress scraps its Presidents' Day recess.
Oh, cry me a river. Boo-hoo-hoo-hoo-hoo. Let'em stay and work. It'll be good for them.
Is any of this really a surprise? From the Republican's perspective, intransigence and hostage-taking is a winner for them. What they don't seem able to understand is that, in the long run, their tactics are ruining their reputation and losing goodwill. In a lot of ways, today's Republican Party is insane as an institution, but Republicans are able win votes regardless because people still insist on seeing the party as being reasonable because up until recently the party has worked hard on maintaining a facade of reasonableness. Apparently they are unwilling to keep up that facade. The more battles like this that they win, the more certain their ultimate defeat becomes. (It's important to understand that I am thinking beyond the 2012 election.)
Not sure how Obama can call it a tax hike! I thought that tax hikes were only tax hikes if you eliminate or roll back taxes on the middle class quarter-billionaires.
Maybe the republicans can pay for this by eliminating their new whipping boy cause of our deficits; that of undeserving social security disability recipients!
What recess? Congress will continue to remain (nominally) in session to prevent more recess appointments. They'll just adjourn temporarily (again.)
Letting the payroll tax cut will hurt the economy, which will hurt Obama's re-election chances.
The Republicans won't suffer. By the election, the public will have forgotten it was due to the Republicans' intransigence and the media will have said everyone's to blame.
If the Republicans keep talking about paying for this tax cut, they are going to have problems explaining renewing the Bush tax cuts without paying for them. The Republicans will want to pay for these cuts with cuts in the budget, but they do not want to specify where the cuts will come from because they think they can rope the Dems into cutting more from Medicare and other social welfare programs. Republicans certainly do not want to say where the cuts should be in this election year. They want the Dems to do the dirty work. But it won't happen because Dems are not going to let Republicans off the hook.
These extraneous issues are just an excuse not to renew the payroll tax cuts because they want the economy to tank. Republicans also want Obama to look like he is raising taxes. But when the discussion eventually turns to the Bush tax cuts the Republicans are not going to be able to avoid talk about paying for the cuts.
"Congressional Republicans don't quite see it that way. How to pay for the bill,..."
Where were/are these objections when they: complain about taxes on those "job creators", vote to give themselves a pay raise, have the nerve to "recess" every other week (wasting tax-payer money), voted to go into Iraq, et.al.?!? Oops, my bad, I confused them with people that actually give a damn about this nation and her people!!
Ending the Bush tax cuts is far more important. Is all this just a ploy to convince us that we must extend those in order to give ourselves a little pocket change?
Does the typical American worker earn $50,000 a year? Because that's what it takes to receive $1,000 from the payroll tax holiday. What about that person making $20,000 a year working 40 hours a week? Ah - they'll see an extra $7.70 in their paycheck every Friday.
If our nation is going to add to the public debt, then let's at least do so in a way that will put people back to work - it's time for a NEW New Deal. Billions of dollars in tax breaks scattered over hundreds of millions of workers will not repair or replace bridges, improve existing mass transit systems, begin planning very high speed passenger and freight rail systems, etc.
But a NEW New Deal will.