Skip to content Skip to footer

GOP Howls After House Extends Tax Cuts for Middle Class Only

Washington - The House of Representatives voted Thursday 234-188 for a tax cut for the middle class and the poor — but not the very rich — a vote meant mostly as a political statement to give Democrats talking points back home. The plan

Washington – The House of Representatives voted Thursday 234-188 for a tax cut for the middle class and the poor — but not the very rich — a vote meant mostly as a political statement to give Democrats talking points back home.

The plan, which would extend George W. Bush-era tax cuts for individuals earning less than $200,000 annually and couples making less than $250,000, is going nowhere in the Senate. A temporary extension of all the cuts for every income class is considered more likely to win enactment by the end of this month; otherwise they expire Dec. 31.

Republicans were furious that the House Democrats staged the vote.

“I’m trying to catch my breath so I don’t refer to this maneuver going on today as chicken crap, all right?” said House Republican leader John Boehner of Ohio, who will become speaker of the House next month. “But this is nonsense. All right? The election was one month ago. We’re 23 months from the next election and the political games have already started, trying to set up the next election.”

Democrats protested such assertions.

“This isn’t about politics. This is about people,” insisted House Ways and Means Committee Chairman Sander Levin, D-Mich.

The real politics of tax cuts, though, was being waged behind closed doors in a nearby Capitol Hill office building, where two Republican lawmakers, two Democrats and two Obama administration officials were trying to hammer out a tax-cut compromise.

They hope to make recommendations soon. Congress wants to adjourn by Dec. 17 and has a huge agenda to tackle before then: providing funds for the government to keep running, voting on the new START nuclear arms treaty with Russia, and voting on a military spending bill possibly repealing the “don’t ask, don’t tell” policy toward gays in uniform, among other business.

Click here to get Truthout stories like this one sent straight to your inbox, 365 days a year.

Senate Republicans vow that until the tax cuts and funding the government for next year are resolved, they won’t let anything else be considered.

The House vote on taxes, and the sharply partisan debate that preceded it, seemed out of place in a Congress where the mood has shifted toward conciliatory tones since the Nov. 2 elections. Republicans gained 63 House seats and six in the Senate, and President Barack Obama earlier this week met with leaders of both parties and pledged a new, cooperative environment.

But in the lame-duck House, where Democrats hold a 255-179 seat majority until year’s end, liberals courting their voter-bloc base seemed to be sending the White House and party leaders a strong message that they don’t want to yield to GOP terms.

“The mistake in the midterm election is that people ran away from the base,” said Rep. William Lacy Clay, D-Mo. “There’s a lesson to be learned, that when you do that, you don’t succeed. You end up with no base.”

Closing the debate was Speaker Nancy Pelosi, D-Calif., arguably the left’s most powerful figure in Washington. She tied the tax cut vote to the stalemate over extending unemployment benefits. Money for that program ran out Wednesday.

The middle class and the poor need that tax break more than ever, she said: “It indeed makes a difference.” People are pleading with lawmakers, “looking for jobs, looking for security for their families,” Pelosi said.

Republicans insisted that small businesses would be hurt if the top rates, now 33 percent and 35 percent, went back to pre-Bush levels of 36 percent and 39.6 percent. Small businesses often pay taxes at individual income tax rates rather than corporate rates.

“Democrats are targeting the very employers we need hiring more workers and buying more equipment — not paying more taxes,” charged Rep. Dave Camp, R-Mich.

Treasury Secretary Timothy Geithner has estimated that fewer than 3 percent of small business owners would be affected by an increase in the top rates, and the nonpartisan Tax Policy Center agreed.

ON THE WEB

Congressional Budget Office deficit projections

Treasury Department report on 2010 deficit

Party divisions in the House

Unofficial roster of 112th Congress House members

Help us Prepare for Trump’s Day One

Trump is busy getting ready for Day One of his presidency – but so is Truthout.

Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.

Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.

As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.

And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.

In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.

We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.

We urgently need your help to prepare. As you know, our December fundraiser is our most important of the year and will determine the scale of work we’ll be able to do in 2025. We’ve set two goals: to raise $86,000 in one-time donations and to add 1260 new monthly donors by midnight on December 31.

Today, we’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.

If you have the means to make a substantial gift, please dig deep during this critical time!

With gratitude and resolve,

Maya, Negin, Saima, and Ziggy