As of now taxes for roughly 160 million middle class Americans will increase on Jan. 1 after Republicans in the House of Representatives essentially voted against extending the payroll tax cut.
Last year Congress approved a payroll tax cut for middle class families that put an extra $1,000 into the pockets of working Americans. The tax cut was intended to provide a little boost to the economy by giving more money for Americans to spend. That tax cut was scheduled to expire at the end of the year unless Congress acted to extend it and in a matter of days that expectation went from most likely happening to unlikely happening.
Senate Republicans joined Senate Democrats in a rare, and overwhelming, showing of bipartisanship and approved the extension for two months on Saturday – the bill’s passage got 89 votes. Most were certain the House would approve the bill as well, but on Saturday night House Speaker John Boehner said his caucus would not approve of the Senate bill and on Tuesday, they voted to send the bill to conference – essentially voting to kill the bill without putting official votes on the legislation.
After the vote, President Barack Obama, Democrats and even Senate Republicans blasted Republicans in the House for voting against the bill and essentially voting to increase taxes on 160 million Americans at the beginning of the year.
“The bipartisan compromise negotiated in the Senate garnered 89 votes,” Rep. Joe Baca, the only Democrat representing San Bernardino County, said in a press release about the topic. “Such a strong showing of support for any bill is rare, which makes it all the more shocking that Tea Party Republicans in the House would refuse to vote on this necessary legislation … By rejecting this compromise, Tea Party Republicans have committed to raising taxes on middle class families, cutting off assistance to unemployed Americans and risking seniors losing access to their doctors.
“The Republican refusal to compromise means that 160 million Americans will see their taxes increase by an average of $1,000. It also means that 2.3 million Americans – including 362,000 Californians – will lose their unemployment benefits by mid-February and that 48 million Medicare recipients will have their medical care jeopardized.”
While Republicans are catching a lot of heat from both sides of the aisle, they contend they rejected the bill because it was only for two months and that Congress should work on a year-long extension – although just weeks ago their caucus said they did not think the payroll tax cut should be extended at all. Senate Republicans even contend, though, that the two-month extension was necessary and should be approved so it gave both parties and both chambers more time to work out a compromise on extending the tax cut longer and not increase taxes in the meantime.
President Obama also pushed back against the House Republican argument of wanting to extend it longer when he made a surprise appearance in the White House briefing room while press secretary Jay Carney was speaking with reporters.
“A one-year agreement is not the issue,” President Obama said. “We can and will come to such an agreement. I saw today that one of the House Republicans referred to what they’re doing as high-stakes poker.
“They’re right about the stakes. But this is not poker. This is not a game. Let’s not play brinksmanship. The American people are weary of it. They’re tired of it. They expect better.”
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