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Payroll Tax cut deal (with Keystone XL pipeline) set

Wow, here’s more great work (sarcasm) by the GOP House/Senate Leadership. To get the following for 2 months and putting it right back into the forefront during the 2012 campaign and therefore to allow the Demoncrats BS to demagogue the issue with the ‘Republicans only really want Tax cuts for the wealthy” BS and/or to put forth a CINO concept that Democrats are for Tax Cuts (yeah, right, tax pandering to those who already don’t pay Federal Income Tax). Yes, the Keystone pipeline aspect is wonderful, but Obama wanted it anyway to placate his Union base and NOW the GOP gives Obama the excuse to give his Enviro-whacko base that it was forced on him (the usual, talking out of both sides of his hind-side)…..

Many of my fellow Republicans agree that the GOP should be taking a principled stand (with some Democrats that are speaking out against ANY extension) that the Social Security funding system should NOT be undermined. While Obama plays with this Tax gimmick, it will not be long before they are calling for yet more Tax increases to cover (this yet another) Obama mistake. Republicans should NOT be part of that problem!

see the whole YahooNEWS/Reuters story at: http://news.yahoo.com/lawmakers-agree-2-month-payroll-tax-cut-extension-003819166.html

Divided lawmakers muster modest tax deal

WASHINGTON (Reuters) – Deeply divided U.S. lawmakers on Friday eked out an agreement to extend payroll tax cuts for just two months, and only after Democrats bowed to Republican demands on a controversial oil pipeline.

The deal, which still needs approval of the full Senate and House of Representatives, fell far short of President Barack Obama‘s push for a one-year extension of the tax relief and long-term unemployed benefits to boost the country’s fragile economic recovery.

The surprisingly modest accord will likely do nothing to dispel concerns of American voters and investors of deep dysfunction in the U.S. capital. It also creates more uncertainty about Washington’s ability to steer the nation through global economic turbulence.

Partisan rancor has derailed efforts to forge a deficit reduction plan, brought the government to the brink of a shutdown three times this year and led to a downgrade of by Standard & Poor’s of the United States’ coveted AAA credit rating in August.

Democrats did not come close to getting the legislation they initially sought, but they put a brave face on the deal they agreed to, saying it gives them another opportunity early next year to fight for a payroll tax cut for wage earners and tax hikes on the wealthy to pay for it — two arguments that play well with Democratic voters.

It was not clear how Friday’s deal would affect Obama, but he has faced persistent criticism from his base of liberal-leaning voters for caving in to Republican demands on policy issues ranging from tax hikes and spending cuts to environmental protections.

“At one minute to midnight and the end of the year the Democrats appear to have conceded two significant issues on the payroll tax cut and they got a measly two months extension in return,” David Gergen, an adviser to two former Democratic and two Republican presidents, told Reuters.

To try to break a stalemate in the payroll tax cut negotiations, Obama’s fellow Democrats first dropped their proposal to pay for it with a surtax on millionaires. Then on Friday they abandoned what had appeared to be a non-negotiable demand — for the Keystone XL oil pipeline from Canada to Texas to be kept separate from the payroll tax cut issue.

The measure would require Obama to make a decision on allowing construction of Keystone within 60 days or declare that “oil trade with Canada is not in the national interest of the United States,” according to an aide to Republican Senator Richard Lugar.

BATTLE RESUMES IN NEW YEAR

Obama recently put off a decision on the pipeline until 2013 while the government studies alternative routes. Many interpreted that move as a way to appease his environmental base in his bid to win re-election in November 2012.

The deal immediately drew fire from environmentalists, who said it was an example of House Republicans holding the federal government hostage on behalf of the oil industry.

“We’re disappointed that the president seemingly signed off on this deal, but we expect that he’s going to live up to his promise … that he will turn down the permit for the pipeline,” said Daniel Kessler, spokesman for Tar Sands Action, a group that opposes the project.

Kessler said he expected members from his group would reprise their protests about the project at Obama’s campaign offices across the country.

In a defense of what appeared to be a major concession to Republicans, an Obama administration official said the deal would effectively mean the Keystone project would not go ahead.

The official noted that the State Department has said it could not make a decision on the project within 60 days and any attempt to force its hand would likely result in a decision to deny a permit for the project.

But on Capitol Hill, Republicans were quick to tout the deal as a major coup.

“I think the Keystone pipeline component is certainly a very large victory,” said Republican Senator Bob Corker.

Senate Republican Leader Mitch McConnell told reporters: “We extended the payroll tax holiday as far as we could get credible payfors to pay for it.” He added, “We’ll be back discussing the same issues in a couple of months.”

That would mean another contentious battle in the midst of the 2012 primary season, which kicks off on January 3 in Iowa.

“If Republicans want to be back here in two months trying to explain why they don’t want to give middle class families a tax cut yet again, that’s their choice, we’re happy to have that conversation,” a Democratic aide said. “We feel that’s a home turf game for us.”

Read more of the YahooNEWS/Reuters story at: http://news.yahoo.com/lawmakers-agree-2-month-payroll-tax-cut-extension-003819166.html

see related:
Do nothing Senate still fails to pass Budget, so it’s Continuing Resolution time again!

As always, Regards from JLenardDetroit from “NoMoTown (The MOTORless CITY)”
“Remember, Liberals – looking to do for America, what they’ve done to Detroit. – Destroy it!”
“I think, therefore I am Conservative”
“Conservative by choice, Republican by necessity”
“The more things ‘hope and change’ the more they stay the same”
“You can lead a Liberal to the Truth (Facts), but you cannot make them THINK!”
“Romney (No, not my first choice) does NOT have a MORMON problem. He has a, far too many Americans; these days; are MORONS problem!”
closing quotes attributable to (me) JLenardDetroit Bookmark and Share
cross-posted: “Rattle With Us” Tea Party, Before It’s News, and RedState

COMMENTS

  • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

    Could they be finding that principled stand against this gimmick? or are they just looking to kick the can…. er… deal… further down the road past the 2012 election. While the later is understandable as an “election strategy” it still does not address the fundamental arguments against having the Tax holiday and harming the Social Security system funding in-balance.

    • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

      This smells of a “Senator Aricept” (John McCain-iac) bipartisanship disease betrayal/deal…. The HOUSE version was for a full year and the Senate Republicans allowed the Democrats to pull this BS.

  • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

    Payroll tax update: DO NOTHING Senate Democrats refuse to do job YET AGAIN…

    Senate Democrats; just as they refused to follow Constitutional, Legal, Rules, etc, ORDER and pass a Budget for more than 900+ days; refuse to attend Conference/Reconciliation for the Payroll Tax cuts order of business. The Democrats, which control the Senate and therefore the committees, have walked out of DC (just as they ran from WI to stop Governmental business) in an abject refusal to complete their duties as outlined by Congressional Regular Orders/Business.

    Call your Senators office and demand they DO THEIR JOBS so your Job isn’t affected; by this Tax uncertainty; and the economy takes another hit. DO NOTHING SENATE DEMOCRATS must be held accountable for their blatant ignoring of the Constitution, Laws, Rules, etc….

  • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

    (from my other comments at RedState: http://www.redstate.com/dhorowitz3/2011/12/21/pass-a-payroll-tax-cut-extension-and-only-a-payroll-tax-cut-extension/#comment-5831)

    The Right argument – Time for DO NOTHING Senate to do its Constitutional duties….

    Last I checked it is the duty of the HOUSE to originate Budget, Spending, Tax, Legislation and for the Senate to originate Treaties. Last I checked, THIS IS NOT A TREATY?. Boehner?s ?The Conference Committee? is the correct ORDER OF BUSINESS and argument, but as usual they never take the comments/teaching far enough?

    ….

    from Payroll Tax cut deal (http://rattlewithus.ning.com/profiles/blogs/payroll-tax-cut-deal-set/) update:

    Payroll tax update: DO NOTHING Senate Democrats refuse to do job YET AGAIN?

    Senate Democrats; just as they refused to follow Constitutional, Legal, Rules, etc, ORDER and pass a Budget for more than 900+ days; refuse to attend Conference/Reconciliation for the Payroll Tax cuts order of business. The Democrats, which control the Senate and therefore the committees, have walked out of DC (just as they ran from WI to stop Governmental business) in an abject refusal to complete their duties as outlined by Congressional Regular Orders/Business.

    Call your Senators office and demand they DO THEIR JOBS so your Job isn?t affected; by this Tax uncertainty; and the economy takes another hit. DO NOTHING SENATE DEMOCRATS must be held accountable for their blatant ignoring of the Constitution, Laws, Rules, etc?.

    see: Payroll Tax cut deal (http://rattlewithus.ning.com/profiles/blogs/payroll-tax-cut-deal-set/) for more.
    see related: Do nothing Senate still fails to pass Budget (http://rattlewithus.ning.com/profiles/blogs/cr-time/).
    ….

    Republicans (especially House GOP) should have NEVER allowed themselves into this in the first place by rejecting the Payroll Tax cut in the name of protecting Social Security. They allowed themselves to be snookered into this whole game last year when this trap was set by Demoncrats ? Senate Republicans are as dumb as Rocks. This has the smell of a ?Senator Aricept? / John McCain-iac (http://www.redstate.com/erick/2009/11/20/if-a-senator-votes-for-cloture-she-is-voting-to-pass-health-care/#comment-42689) BiPartisanship disease deal all over it (as I?ve said in my original ?deal set? piece.

  • geoph

    Notice how with Caine gone, no one is talking about tax reform anymore?
    Apparently, mission accomplished.

    Where is the voice of our Party’s would be leader?
    Where is Bachmann, Gingrich, Perry, Santorum, or even Romney?
    Where is the voice of our side?
    The voice of fiscal responsibility?
    The voice of opposition?

    Hush, and listen to those wanting to lead us…

    • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

      … is about all we get. They ALL have “Tax Reform” plans, but it is certainly NOT high on their list of Talking points.

  • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

    I just called Mitch McConnell’s office (202-224-2541, plus followed up with online contact post to him) to THANK HIM for the SELL-OUT… I told them- “normally we have to wait until Conference/Reconciliation before they sell us out – THANKS for siding with Harry Reid and selling us out right up front… I’m sure it saved them a lot of time, and was much more efficient, so they could evacuate the Senate and go home for Vaction – running, like the WI Democrats did, from their duties!”