GOP, Democrats at a standstill on tax cut plan

2011-12-20T00:05:00Z 2012-09-04T20:52:04Z GOP, Democrats at a standstill on tax cut planThe Associated Press The Associated Press
December 20, 2011 12:05 am  • 

WASHINGTON — Congress careened toward a holiday season standoff Monday on legislation to prevent a Social Security payroll tax increase for 160 million workers on Jan. 1.

"It's time to stop the nonsense. We can resolve these differences, and we can do it in a way that provides certainty for job creators and others," said Speaker John Boehner, R-Ohio.

A vote was set for today for the House to reject a bipartisan two-month extension that cleared the Senate over the weekend and seek negotiations on a bill to renew the cuts through 2012.

In an acid response, Senate Majority Leader Harry Reid, D-Nev., accused Boehner of risking a tax increase for millions "just because a few angry Tea Partyers raised their voices." Reid ruled out new negotiations until the two-month measure is enacted.

That left the two parties approaching Christmas week gridlock over an effort to pass core elements of President Barack Obama's jobs program — renewal of the tax cuts and long-term unemployment benefits — that Republican and Democratic leaders alike said they favored.

It was the latest and probably the last such partisan confrontation in a year of divided government that brought the Treasury to the brink of a first-ever default last summer, and more than once pushed the vast federal establishment to the edge of a partial shutdown.

This time, unlike the others, Republican divisions were prominently on display.

The two-month measure that cleared the Senate, 89-10, on Saturday had the full support of the GOP leader, Sen. Mitch McConnell, who also said he was optimistic the House would sign on. Senate negotiators had tried to agree on a compromise to cover a full year but were unable to come up with enough savings to offset the cost and prevent deficits from rising.

The two-month extension was a fallback, and officials say that when McConnell personally informed Boehner and House Majority Leader Eric Cantor, R-Va., of the deal at a private meeting, they said they would check with their rank and file.

But on Saturday, restive House conservatives made clear during a telephone conference call that they were unhappy with the measure.

"I've never seen us so unified," Rep. Louie Gohmert, R-Texas, said as he left a two-hour, closed-door meeting Monday night where Republicans firmed up their plans.

Not surprisingly, the White House weighed in on the side of Obama's Democratic allies.

Spokesman Jay Carney said Boehner was for the two-month stopgap bill "before he was against it" — a claim that the House speaker flatly denied.

Speaking to reporters at the White House, Carney added, "It is not our job to negotiate between him and Senate Republicans."

"We are witnessing the concluding convulsion of confrontation and obstruction in the most unproductive, Tea Party-dominated partisan session of the Congress in which I have participated," said Rep. Steny Hoyer of Maryland, second-ranking member of the Democratic leadership.

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