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Liberal Democrats Livid Over Tax-Cut Compromise; Sanders Threatens Filibuster

1 year ago
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President Obama may have struck a compromise with congressional Republicans on tax cuts Monday, but he now has another group to worry about -- liberal Democrats in the House and Senate who are livid over the deal that they say betrays their most cherished values.

"How can we rationalize tax cuts for the wealthiest Americans when were facing this kind of a deficit?" Sen. Richard Durbin (D-Ill.) said in an interview with NPR Monday night. "There is a group [of Democrats] that may walk. Let's say at some point, 'You've gone too far.' "

The tentative agreement that Obama announced Monday night would extend for two years the Bush tax cuts for all earners, while also continuing current tax rates on dividends and capital gains. In addition, the estate tax, which expired in 2009, would be temporarily set at 35 percent with a $5 million exemption, and extended unemployment benefits would continue for 13 months. Obama also said that negotiators had agreed to a one-year, 2-percentage point cut in the payroll tax for all workers.

Bernie SandersOf all of the details in the package, the most galling to liberals seemed to be the compromise to extend the tax cuts for the highest earners, which many Democrats fought when the cuts passed Congress in 2001 and 2003 and have railed against ever since. Democrats had also badly wanted to make permanent the tax cuts for middle- and lower-income workers, which was not included in the deal.

Sen. Bernie Sanders (I-Vt.), one of the most liberal members of the Senate, threatened to filibuster the agreement in the upper chamber, calling it bad politics and bad policy.

"I think for a Democratic president, a Democratic House, and a Democratic Senate to be following the Bush economic philosophy of tax breaks for millionaires and billionaires is absolutely wrong public policy and absolutely wrong politically," Sanders said in an interview on MSNBC. "I've got to tell you, I will do whatever I can to see that 60 votes are not acquired to pass this piece of legislation."

On the House side, Rep. John Conyers (D-Mich.) said that he, too, would do whatever he could to stop the compromise from passing in the lame duck session of Congress.

"This is a fight for the heart and soul of the Democratic Party and the nation," Conyers said after the president made his announcement. "I can tell you with certainty that legislative blackmail of this kind by the Republicans will be vehemently opposed by many if not most Democrats, progressives, and some Republicans who are concerned with the country's financial budget."

Rep. Peter Welch (D-Vt.) circulated a letter urging House Democrats to oppose the deal, calling it "fiscally irresponsible" and "grossly unfair."

"We support extending tax cuts in full to 98 percent of American taxpayers, as the President initially proposed," Welch wrote. "He should not back down. Nor should we."

The White House will begin the hard work of selling the deal to those disheartened Democrats Tuesday, when Vice President Joe Biden heads to Capitol Hill to convince his former colleagues that the president won the best compromise possible from emboldened Republicans to keep middle-income tax rates unchanged.

The convincing won't be easy, but as one senior White House official said in a call with reporters Monday night, "No one is going to be happy with all of this, but that's what compromise is."
Filed Under: The Capitolist

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maapple6

Though I feel I am already taxed to death, I'd rather have all of the tax cuts expire and pay more than give the rich one more penny!!!! Some of the richest people in the country, including Warren Buffet, sent a letter to Obama stating that they WANT TO PAY MORE TAXES... they feel they've done well for a long time and that it's time to give back to our country... they now the middle class is the back bone of this country and when we are gone the rich will suffer as well.

December 07 2010 at 2:04 PM
richie

Why don't they just print more money to pay for everything to make up for the financial budget. Stop sending money to other countries that can't even account for where it goes. Why not recoup the money from the banks that received TARP $ money and the auto companies that are showing a profit. The banks started this by giving bad loans and they should pay for their mistakes.

December 07 2010 at 2:04 PM
ragtopdaz

Its all fine For Obama to help people who really need it, but what about the bums drawing SSI who have never had a job. Their excuses go from being to fat to work or being to stupid to read the job application. Most of these leaches have been playing this game for generations. Good old Bill Clinton tried to overhaul the welfare debacle years ago. But these people being the crafty, non working, non tax paying leaches who prey on those that do. Went in a different direction. Its called SSI. Tell me where this money is coming from? Then you see these large family's where no one has a job, all their kids as well as both adults have cell phones, living in section 8 housing, on food stamps, driving SUV's, going to food banks to load up on free food meant for those down on their luck. Doing drugs, and all the booze you can drink thanks to SSI. Then these same people are milking the MEDICAD system to pay for them to have more kids, its just out of control and it leaves a bad taste in my mouth listening to Obama saying we need to add more benefits to these people. what about the people who helped build this country.

December 07 2010 at 2:03 PM
majorandre1

Obama has three weeks left to get it right, and still he keeps screwing up. Continuing Bush-era tax breaks reduces government income; funding unemployment benefits spends money we don't have. You can't do both. Funding unemployment benefits requires elinimating tax breaks for the rich. What part of "balanced budget" doesn't he understand? Kudos to Dick Durbin and company.

December 07 2010 at 2:01 PM
curmudgicus

The "Wealth-aholics" have won again. There will be even more money for pathologically acquistive and less for everyone and everything else. If we got to the logical endpoint at which a single person controlled all the wealth in the country, what do you suppose would happen? They'd complain that they were the only person paying taxes, and all their purchased Congressmen would vote to abolish taxes entirely. Soylent Green isn't far behind.

December 07 2010 at 2:01 PM
BuckeyeCentral

No problem with the estate tax provisions-- remember, this is double taxation at its finest! I do, however, have problems with Congress and the administration's continued actions of TEMPORARY fixes- which in reality fix NOTHING. Why not finally FIX AMT... allow it to index or something-- but FIX IT! And these measures as currently constructed simply continue the death spiral of borrowing into the future. We need a concrete fix-- and everyone needs to ante up. ...just more of the same from Washington!

December 07 2010 at 1:59 PM
Matt

I say let all the cuts expire. We have fought 2 wars and not funded a dime of it - time to pay up America! We elected Bushie so he could prosecute these wars & run us $5 trillion more in debt - we have to pay it up. If everyone's suddenly worried about debt and deficit then let the taxes go back to where they were, stop the spending, and let us have our full on Depression we need to get things corrected again.

December 07 2010 at 1:58 PM
guevindna

Now that Obama will really compromise with Republicans we get to see the rest of the Democrats having hissies about it! Middle ground has been reached, movement finally begins, and now we see the real intent of Dems...they don't want to compromise anything if it would actually help people.

December 07 2010 at 1:57 PM
cowgirl22

Being a liberal Democrat; I say stand firm against the Republican agenda, whick as always more for the rich. At this rate there will be little left of the middle class. President Obama when I voted for you I believed the Democrats would make life better for the middle class, knowing you and fellow Democrats have accomplished much, let' keep up and avoid the Republician "compromise".

December 07 2010 at 1:57 PM
Bernadette

It's TEMPORARY people!!! Two years!! I wish they did this with the Health Care Bill instead of rushing it through. Perhaps the President learned something from that fumble after all.

December 07 2010 at 1:56 PM

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