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

UN: 1 Million Somalis at Risk of Hunger

Group warns region is in dire need of humanitarian aid, with at least 200,000 children under age of five acutely malnourished as drought hits southern, central part of nation More

Human Rights Groups Allege Supression of Freedoms in Thailand

Thailand’s military, police have suppressed release of independent report assessing human rights in kingdom during first 100 days of latest coup More

Jennifer Lawrence Contacts FBI After Nude Photos Hacked

'Silver Linings Playbook' actress' photos were posted on image-sharing forum 4chan; Federal Bureau of Investigations is looking into matter 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.
Ukraine Schools Resume Classes, Donate to Government Forcesi
X
September 02, 2014 12:58 PM
A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Internet, Technology Offer New Tools for Journalists

The Internet and rapidly evolving technology is quickly changing how people receive news and how journalists deliver it. There are now more ways to tell a story than ever before. One school in Los Angeles is teaching the next generation of journalists with the help of a state-of-the-art newsroom. Elizabeth Lee has this report.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.

AppleAndroid