Republican congressional leaders are indicating that they will allow the Bush tax cuts to be extended until the end of the year without requiring offset spending cuts to pay for it. The White House is demanding that the GOP give even more.
The leaders of congressional Republicans will present an extension of the Bush tax cuts to the rest of the House and Senate GOP tonight. The proposal has been stripped of the requirement that cuts be made to pay for the continuing tax cuts that continue to starve the Social Security fund of badly needed revenue.
Republicans are not willing to be responsible for a perceived tax increase on 160 million Americans in an election year and have therefor given up the fight on the tax holiday. Instead, they have de-coupled the unemployment insurance extension and the so-called “doc-fix” from the bill – a move that has irritated Democrats who seem only ready to accept everything they want while giving nothing in return.
Despite getting the payroll tax holiday extended until the end of the year without any concessions, the White House has indicated that they want everything and intend to give nothing. Jay Carney said that they believe that the unemployment extension and Medicare doc-fix should be included in this deal.
All that is left is for the White House to complain that Republicans are unwilling to negotiate despite them being the only ones at the table giving in on anything – at all.