Posted on 12/12/2007 8:50:16 AM PST by Ernest_at_the_Beach
Congress has been brought to a grinding halt by hardening Democratic and Republican stances on taxes and spending just days before lawmakers begin leaving Washington for Christmas and New Year’s.
The two sides are, in some cases, refusing even to speak to each other about the massive omnibus and an Alternative Minimum Tax (AMT) bill.
Senate Republicans refused to meet Democrats Tuesday on spending and House Democrats rejected the Senate’s AMT “patch,” preparing a new version paid for with corporate tax increases.
Senate Minority Leader Mitch McConnell (R-Ky.) countered the majority’s plans with a proposal that would require Democrats to accept virtually all of President Bush’s demands on spending.
McConnell demanded that Democrats also provide $70 billion for the war with no strings attached.
Frustration boiled over in the Senate, where Majority Leader Harry Reid (D-Nev.) said Bush “is impossible — and has been for seven years — to deal with.”
Reid sought to portray senior White House adviser Ed Gillespie as an incarnation of Karl Rove and a mastermind of intransigence.
The majority leader disdained McConnell’s proposal, noting that an earlier Republican effort to increase war funding without restrictions failed to pass. Reid was not ready to accept an across-the-board funding cut to pare the omnibus to Bush’s ceiling.
Senate Republicans rejected in advance a proposal from House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) to raise taxes to pay the $50 billion cost of the AMT patch. Rangel sought a higher tax rate on offshore deferred compensation. The Senate rejected a Rangel plan this year that paid for the patch by raising taxes on private equity and hedge funds.
When asked if Senate Republicans could accept AMT relief accompanied by tax increases, Sen. Jon Kyl (Ariz.), the Republican whip-elect, replied simply: “No.”
Sen. Lindsey Graham (R-S.C.) said there was “zero” chance of the Senate passing an AMT bill that included tax increases.
Sen. Ron Wyden (Ore.), a Democratic member of the Finance Committee, said it would be difficult to pass a package with tax increases. The patch would temporarily protect 23 million American taxpayers from becoming subject to the AMT.
House Democrats are firm in demanding new taxes to pay for the $50 billion cost of AMT relief. Two leading liberal lawmakers circulated a letter among colleagues seeking to pressure Democratic leaders.
“As progressive members of the Democratic Caucus, we wish to make clear our concern with any AMT patch that does not adhere to the House PAYGO rules,” wrote Rep. Lloyd Doggett (D-Texas), a member of Ways and Means, and Rep. Peter DeFazio (D-Ore.). “We believe House Democrats must remain united on this principle.”
Mobilization by liberals reinforces a coalition of House Democrats from across the political spectrum pressing Speaker Nancy Pelosi (D-Calif.) to stand firm.
More than 30 conservative Blue Dog Democrats signed a letter to Pelosi and House Majority Leader Steny Hoyer (D-Md.) urging them to pay for tax relief.
“Under no circumstance will we vote for any piece of legislation that does not meet the requirements of PAYGO, nor will we vote to waive the PAYGO rules to allow for such legislation,” they wrote, referring to budget rules that require the cost of bills be offset with tax increases or spending cuts.
Rep. Ellen Tauscher (D-Calif.), chairwoman of the New Democrat Coalition, also demands an AMT bill that conforms with budget rules. “I want AMT paid for. I think the entire Democratic Caucus wants the AMT paid for. I am very resolved to that.
“I’m very mindful of the number of constituents damaged if we don’t get this fixed … [people] also want [tax relief] paid for because they are deeply concerned about the way the Republicans ran the Congress.”
Federal debt has soared during the Bush presidency. Republicans say deficit spending was needed after the Sept. 11, 2001 terrorist attacks and the ensuing recession.
Tauscher said Senate Republicans need to recognize that a new party controls Congress, and compromise.
“I would remind them we took the majority and decided we were not going to run the government as they did, as profligate spenders,” she said. “They need to be cooperative.”
Democratic House leaders, including Pelosi, Hoyer and Appropriations Committee Chairman David Obey (D-Wis.), met Tuesday to discuss strategy. Pelosi also met Reid to discuss spending and taxes.
But they do not appear to have decided how to break the impasse.
Obey has proposed reducing the cost of the omnibus to Bush’s proposal and cutting all lawmakers’ earmarks to spare a variety of programs from cuts. He hopes rank-and-file Republicans will press their leaders to accept higher domestic spending to save projects slated for their districts, said a Democratic aide.
Reid was not embracing that idea when asked about it Tuesday.
The Dem clowns need to fund our troops. Now. And with no strings.
Senate Minority Leader Mitch McConnell (R-Ky.)
Good man doing a fine job, got the dRATs squealing, Dingy Harry starting to become unglued.
Will Dingy keep someone around to stop recess appointments again ?
Unless they correct the AMT problem, they’ll be taking more of your tax dollars than you would expect. The AMT is making about a $5,000 difference in my projected tax bill.
Somebody TAKE AWAY THEIR CHECKBOOKS!
Simple solution: Strip out every earmark unrelated to the original bill from all appropriations bills. That will more than pay for the AMT relief.
Glad to see Mitch grow a pair. He was hiding in the cloak room during the amnesty debate.
Hopefully even if Dingy leaves someone around during “recess” there is a procedure, like a quorum call, which would allow for a finding that they are indeed in recess. Then we can hope that Dubya will appoint some people.
He passed up a chance to pardon Scooter and Ramos and Compeon. Maybe he never will. Gotta protect that legacy, ya know
It's a sad state of affairs when you can't plan your household budget without having to account for the whims of politicians.
Does this imply the Bush can make recess appointments during the vacation...or is Dingy Harry going to stay open for business?
Pelosi (D-Calif.) spent a little more than $3 million in the first nine months of 2007, records show, compared to the $1.8 million Rep. Dennis Hastert (R-Ill.) spent during the same period in 2006.
House Speaker Nancy Pelosi has spent $16,000 on flowers since taking office, one reason why she spent 63 percent more in her high-profile inaugural year than her low-key predecessor did last year.
The Democrat majority passed the AMT in the ‘70s as part of their usual class warfare agenda. Now let them live with the consequences of their idiotic failure to index it for inflation.
If the Republicans have any brains and political savvy whatsoever, they will beat the Dems over the head with the results of this Democrat tax on the middle class taxpayer. Twenty-three million taxpayers will be really angry when they have to file their AMT this year because they have a combined household income of $100,000. I truly hope the Republicans don’t bail out Rangel and the rest of the Dems who voted for this confiscatory tax.
The more politics changes, the more it stays the same.
Hay, Dumbs all you have to do is eat the port and cut spending and there you have it as simple as can be. Amen.
I read that Webb - the Allen wannabe - spends a few minutes each day opening an empty Senate and then closing it. I don;t know if he takes out the trash though.
Perhaps the Dumbs would eat the port. I would much prefer to drink it......with a small wheel of stilton.
It sounds like the rats are intent on raising taxes for the purpose of providing more welfare for their constituents (society’s parasites) while the Republicans are resolute on demanding that their constituents (society’s producers) get to keep their own money.
Hmmm. I’ll go with the Republicans.
Gridlock away, Congress. Sounds good to me.
The Dem clowns need to fund our troops. Now. And with no strings.
That's exactly why I say I'd rather see Hillery or Obama in the white house than McCain or Rudy or even Romney...with a Dem in office the Pubs will fight everything the dems try to push through and we'll have 4 years of nothing, let a RINO in office and we get exactly what the Dems want pushed through with no objection because "Our guy" is for it....
Well, it's about time you rich people paid your fair share.
Now gimme gimme gimme gimme gimme gimme.....
/rat imitation
I know you’re just being cynical (can’t blame you) but the most important thing besides the war effort is the appointment of judges. On neither of those matters could America survive a scumbag Democrat in the White House. ANY scumbag Democrat.
A quorum call would require a sudden gift of backbone to the GOP, who are sadly lacking.
If these taxpayers who will owe the AMT unless “corrected” haven’t paid the money yet, why is the government planning on spending it already so that it needs to be “paid for”?
Congressional deadlock. Maybe now we can have some real progress.
I heard on the news this morning that the Dems want to strip out all the earmarks for Republican districts but keep their own.
Bunch of hypocrites.
OK, then, cut spending. Simple to fix!
Scratch a dem, blue or otherwise, and you'll always get a tax and spend liberal under the surface.
Why do democrats always see RAISING taxes as the only way to fix things? In essence, they want to raise taxes in order to cut taxes.
How about no new taxes: Fix what you have with what you got, and if you ain't got enough cut some of what you're spending!!!
As a drunken sailor with vast experience I resent the comparison to members of Congress. At least I was spending MY OWN money.
I could make some enlightening comments about the whorehouses, but that's another story.
The Alternative Minimum Tax is not indexed for inflation. If Congress does not act, more and more Americans will be paying higher and higher taxes.
Bush's tax breaks are also going to expire, and if Congress doesn't act to preserve them, we are going to be paying considerably higher tax rates again.
However, it is doubtful that increased tax rates will generate more income for the government. They will instead damage our economy and decrease tax revenues rather than raise them.
Although I am very much in favor of fixing or getting rid of the Alternative Minimum Tax, I wish someone would point out that ‘fixing’ the AMT would amount to one of the dreaded “tax cuts for the rich” that the Democrats are always whining about. And if they offset the fix with a tax increase, isn’t that making everyone else pay for their tax cut for the rich?
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
He always had a pair. He couldn’t openly oppose shamnesty because he is married to Elaine Chao, Secretary of Labor in Bush cabinet. He kept his mouth shot but behind the scenes really worked with John Kyl (R-AZ) (who, ironically, was asked by Bush to be a point man on the issue) to derail the bills.
Of course, and I hope they do go through with it. It will have no chance in hell to become law and they will really tick off electorate in many states, "blue" and "red". The best way to fight hypocrisy is to expose it to the sunshine, for everyone to see.
This is the kind of thing that needs to be used in the next elections, something that national or state GOP apparatus did not do in 2006. Tie them to Pelosi in all advertisements, make them Siamese twins of Nacny and Harry, and we'll have House back, and might even take seats in the Senate. Just requires party leadership (yes, I know...) and coordinated message against "incompetent House and Senate majority leadership in a time of war on terror".
Let's not repeat the mistakes of 2006. 2008 is winnable, just needs some guts and coordinations on part of the party, instead of scoring points against each other. The lesson is that if we don't like someone in GOP, take them down in the primaries and keep taking each of them down until find a good one - but don't give seats to Pelosi's proxies, no matter how "Blue" these Democratic "Dogs" are.
Well Reid, you don’t have to get snippy about it.
I hear that. The past couple of tax years I’ve watched myself creep closer towards hitting the AMT. If I get hit with this because the A-hole Dems in congress can’t cut spending to pay for stuff; I’ll withold my return until they get it figured out..can’t do your job I ain’t paying ya.
So the Dem strategy appears to be give us our tax increase or will make the middle class pay. The Republicans were idiots too when they ran the show, but at least they let me keep more of my pay..I miss the good ol’ days.
I hear from a IRS worker that if the AMT isn’t fixed in the next few days the IRS can’t make the changes in time for early filing. The tax season will be delayed and people waiting for their refunds are going to be pretty mad.
I like to check out the DU website about two times a year. I went there the other day. Boy, are they pissed at the Dem leadership in Congress.
Ya gotta love it.
Congress doing nothing is truly always better than passing very bad legislation!
Dems cave on spending
http://thehill.com/index2.php?option=com_content&task=view&id=70300&pop=1&page=0&Itemid=70
Senate and House Democrats backed down Wednesday from a spending showdown with President Bush.
The Democrats’ capitulation Wednesday on the total domestic spending level is the latest instance of Bush prevailing on a major policy showdown. Bush and his Senate Republican allies have repeatedly beat back efforts by Democrats to place restrictions on funding for the war in Iraq as well as Democratic attempts to expand funding of children’s health insurance by $35 billion.
Democratic leaders said Wednesday that they would keep total spending at the strict $933 billion limit set by the White House. House Speaker Nancy Pelosi (D-Calif.) also abandoned a proposal she supported Tuesday to eliminate lawmakers’ earmarks from spending bills after she faced stiff opposition from powerful fellow Democrats.
Pelosi told the Democratic chairmen of the House Appropriations subcommittees, the so-called cardinals, that earmarks would stay in the omnibus and that Democratic leaders would accede to cut spending to levels demanded by Bush to save 11 spending bills from a veto, said sources familiar with a meeting that took place in Pelosi’s office early Wednesday morning.
The Democratic cardinals rebelled against a plan suggested by Appropriations Committee Chairman David Obey (D-Wis.) to save $9.5 billion by slashing earmarks. Obey hoped to use the money to minimize cuts to domestic programs important to Democrats.
Pelosi emphasized in a press conference Wednesday afternoon that “we don’t want the bill vetoed,” in reference to a massive omnibus that Democrats and Republicans in the Senate and House are in the midst of negotiating. She said leaders would have a better understanding of the bill’s details by mid-Thursday.
Although Democrats have accepted Bush’s spending ceiling, obstacles remain to reaching final agreement. House and Senate Democrats are pursuing different approaches to slimming the spending package.
House Democrats have elected to manipulate funding levels for various government programs to reflect their policy priorities. The House Appropriations subcommittee chairmen have been given substantial leeway to decide which programs will be cut and boosted in the process.
The Senate is expected to adopt a straight across-the-board cut without discriminating among Democratic and Republican favorites, said several Democrats briefed on leadership negotiations.
As a result, even after House and Senate appropriators shave the omnibus to Bush’s number, they will still have to wrestle over differences in each chamber’s version.
House leaders are also planning to trim money from individual earmarks but will stop well short of eliminating projects entirely, as Obey proposed.
The good news for Democrats is that their concession on overall spending brings them significantly closer to enacting into law a range of spending priorities.
Pelosi highlighted several areas that would benefit from the passage of Democratic-crafted spending bills, including children’s health and the National Institutes of Health.
She said it is “immoral” that researchers are missing many opportunities to advance health science because of insufficient federal funding, noting that 1,500 Americans die every day because of cancer.
Another significant difficulty emerging for Democrats is a disagreement over war funding. Pelosi made clear that a House-passed omnibus would not include any more funding for the war in Iraq, although it may include funds for military operations in Afghanistan.
One senior House appropriator said that plan means it will be left to the Senate to decide how to package war funds in the omnibus. As lawmakers scramble to recess before Christmas, there will be pressure to add war funds without restrictions on Bush’s ability to conduct the war. The president has vowed to veto any effort to withdraw troops from Iraq or impose other constraints.
House Democrats may face the difficult proposition of considering a spending package that includes unfettered war monies. Pelosi said she would vote against such a bill but did not say she would prevent it from coming to the floor, revealing a large measure of pragmatism as the first session of the 110th Congress reaches its final days.
In the final analysis, Democrats realized they would not be able to muster enough Republican votes to override Bush’s veto. The president vowed to reject any spending package that exceeded the $933 billion limit he set.
Democrats made a final attempt to drive a wedge between congressional Republicans and Bush by threatening to kill all lawmakers’ earmarks to bring the cost of the omnibus to the level Bush demanded. Obey hoped rank-and-file Republicans would pressure their leaders to accept a Democratic-proposed compromise that exceeded the White House budget by $11 billion, said a Democratic aide.
But that plan fizzled in the face of stiff Democratic opposition.
Senate Majority Leader Harry Reid (D-Nev.), who served as the senior Democrat on the Senate Appropriations Energy and Water Development subcommittee before becoming Senate Democratic leader, may have posed the biggest hurdle.
At a Tuesday press conference, Reid declined to endorse the proposal to cut all earmarks and defended his right to steer funds to his home state.
Pelosi also faced strong opposition from the Democratic chairmen of the House Appropriations subcommittees, who in some cases had been waiting through 12 years of Republican control to finally wield a gavel on spending decisions.
Pelosi eased their concerns Wednesday morning by informing them that earmarks would not be cut and spending levels would be pared to the president’s levels to smooth the way for the omnibus to pass. Many government programs have had to subsist on a yearlong stopgap spending measure because Congress failed to pass a slew of spending bills in 2006. Many lawmakers want to avoid that from happening again.
Rep. Norm Dicks (D-Wash.), chairman of the House Interior Appropriations Subcommittee, said he firmly opposed erasing the earmarks he had hammered out with colleagues. He said rank-and-file Democrats were tacitly promised earmarks for 2008 after they agreed to forgo them for 2007 by accepting the stopgap measure.
***********************************
WASHINGTON (AP) - Congressional Democrats pressed ahead Thursday with a bill to keep the federal government open for another week as lawmakers fashioned an omnibus spending bill and sought agreement with the White House.
The stopgap funding bill would fund through Dec. 21 the 14 Cabinet departments whose budgets have yet to pass. It's expected the omnibus measure will pass by then, allowing Congress to finally adjourn for the year.
Democrats announced Wednesday they would all but surrender to President Bush's demand that lawmakers appropriate no more than $933 billion for annual operating expenses for Cabinet departments whose budgets are set each year by Congress.
Democrats made an exception for a $3.7 billion increase for veterans health care, calculating that Bush and his GOP allies on Capitol Hill would relent in the case of the politically sacrosanct program.
The White House was quick to say it had not signed on to the Democrats' omnibus bill, awaiting details of the funding mix within the bill and the resolution of its request for additional Iraq and Afghanistan war funds.
"We're hopeful and encouraged by the movement that we're seeing on the Hill right now," said White House budget office spokesman Sean Kevelighan.
The White House does not believe the additional veterans money is needed and previously has issued veto threats if the money for veterans is not accompanied by cuts elsewhere in the budget. That approach has been widely seen as unrealistic, even by top Republicans like House Minority Leader John Boehner of Ohio and former Appropriations Committee Chairman Jerry Lewis, R-Calif.
But with the White House playing such a strong hand in the negotiations, Boehner now insists Democrats stick within the president's $933 billion figure, with exceptions for border security and a few other "emergencies."
The issue of Iraq has yet to be resolved, though expectations were growing that Senate Democrats would relent and allow Republicans to provide up to $70 billion in new war funds to the measure, without restrictions that have provoked Bush veto threats, such as a December 2008 target date for withdrawing combat troops.
The bill will not carry Iraq aid when passing the House next week, though Democrats have said they will attach about $30 billion for U.S. operations in Afghanistan and some domestic Pentagon needs.
Democrats' decision to largely hew to Bush's budget demand caps months of wrangling. Democrats initially crafted bills adding $23 billion above Bush's budget, devoting the funding to increases for domestic programs such as health research, education, grants to state and local governments and energy research.
More recently, Democrats worked with pragmatic appropriations panel Republicans such as Sen. Thad Cochran of Mississippi and Rep. James Walsh of New York to craft a split-the-differences bill cutting $11 billion from the earlier Democratic measures. That effort collapsed after a White House issued a veto threat Saturday.
Now, lawmakers led by House Appropriations Committee Chairman David Obey, D-Wis., and his Senate counterpart Robert Byrd, D-W.Va., are squeezing the remaining funding bills by another 1.6 percent, said a Byrd spokesman.
The measure would fund every Cabinet department except the Pentagon. Under Bush's budget, domestic Cabinet departments other than Homeland Security and Veterans Affairs would see their budgets frozen. Considering inflation and population gains, that means most programs wouldn't be able to deliver a comparable level of services next year as they do now.
Still, there are steps Democrats are taking to ease the pain. Democrats have shifted at least $5 billion from defense and foreign aid accounts to domestic programs. And they're added $2 billion in future-year appropriations for education that, for practical purposes, adds to Bush's budget for next year.
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