News / USA

House Democrats Reject Obama Tax Cut Plan

Vice President Joe Biden (L) and House Speaker Nancy Pelosi talk as they leave a Democratic Caucus meeting on Capitol Hill , 08 Dec 2010
Vice President Joe Biden (L) and House Speaker Nancy Pelosi talk as they leave a Democratic Caucus meeting on Capitol Hill , 08 Dec 2010

The Democratic caucus of the U.S. House of Representatives has rejected a deal on extending tax cuts negotiated by President Barack Obama and Senate Republicans. Many Democrats are enraged that the president gave in to Republican demands to extend Bush-era tax cuts for all taxpayers, including the wealthiest Americans and are demanding changes to the plan before it comes to the House floor.

House Democrats appear to be staging an open revolt against Democratic President Obama, with just one week to go before this session of Congress planned to finish its business and leave Washington for the holiday recess.

The White House has been strongly pushing a deal the president crafted with Senate Republicans, including Senate Minority leader Mitch McConnell. President Obama and most Democrats originally wanted to extend Bush-era tax cuts only for lower-and-middle wage earners and not for the wealthiest Americans. But earlier this week, the president agreed to extend tax cuts for all Americans for two years, in exchange for Republican concessions to extend unemployment benefits for 13 months and grant new tax breaks to businesses and individuals.

At a closed Democratic caucus meeting, Representative Peter de Fazio of Oregon sponsored a resolution rejecting the presidents' tax cut proposal.

"The tax deal between the White House and Mitch McConnell in the Senate is not acceptable to the Democratic caucus of the House of Representatives and we will not bring it to the floor in its current form," he said.

The resolution was easily approved by a voice vote in the caucus, throwing plans into uncertainty for the House and the Senate to pass legislation extending Bush-era tax cuts before they expire at the end of this year. Democratic Representative James Clyburn of South Carolina explained that for him, plans to exempt estates worth as much as 10 million dollars from inheritance tax went too far in catering to the richest Americans at the expense of lower wage earners.


"Right now there is a proposal out there that I agree with in part and don't agree with in part. I would like to see that proposal modified as it relates to inheritance taxes," said Clyburn.

President Obama has been warning his fellow Democrats that they risk plunging the country back into recession if they reject the tax cut deal, saying it will create thousands of new jobs. White House spokesman Robert Gibbs expressed optimism that the plan will end up passing.

"The White House strongly believes that at the end of the day Congress will give the American people a vote on a plan that prevents their taxes from going up by several thousand dollars at the beginning of the year," said Gibbs.

Meanwhile, the Senate appears to be moving forward, with a vote on the tax cut deal expected within the next couple of days. Ironically, most House and Senate Republicans are standing with President Obama on the tax cut issue. It is unclear whether they would accept any changes to the plan that might make it acceptable to House Democrats.

You May Like

Video Five Patients Given Experimental Ebola Drug Said To Be Improving

Experimental drugs have been tried on six people: three Westerners and now, three African pyhysicians More

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As Ukrainian military reclaims control of eastern cities residents rebuild their lives, but many say everyone is being treated with suspicion More

Video In Rural Kenya, Pressure Builds Against Female Circumcision

Girls learn to object; FGM practitioners face penalties from jail sentences to stiff fines More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Five Patients Given Experimental Ebola Drug Said to Be Improvingi
X
Carol Pearson
August 19, 2014 11:43 PM
The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.
Video

Video For Obama, Racial Violence is Personal Issue

The racial violence in the St. Louis suburb of Ferguson is presenting U.S. President Barack Obama with an issue to which he has a deep personal connection. To many Americans, Obama's election as America's first black president marked a turning point in race relations in the United States, and Obama has made ending the violence a policy priority. On Monday he issued a new call for calm and understanding. Luis Ramirez reports from the White House.
Video

Video Clinton-Obama Relationship Could Impact 2016 Election

President Barack Obama and former Secretary of State Hillary Clinton have a long and complicated relationship. That relationship took another turn recently when Clinton criticized the president’s foreign policy. VOA National Correspondent Jim Malone reports there is renewed attention on the Clinton-Obama relationship as Hillary Clinton considers running for
Video

Video Iran Looks to Maintain Influence in Baghdad With New Shia PM

Washington and Tehran share the goal of stopping Syrian-based militants in Iraq. But experts say it's Iran, not the United States, that will most influence how the new government in Baghdad approaches internal reforms and the war in Syria. VOA State Department Correspondent Scott Stearns has the story.

AppleAndroid