Research Briefing

Obama And Harry Reid Would Rather Shut The Government Down Than Cut Taxes And Create Jobs

DEMOCRATS VOTE TO RAISE TAXES, KILL 20,000 JOBS, SHUTDOWN GOVERNMENT

The Republican House Approved The Measure On A Bipartisan Vote, 234 To 193. “The House approved the Republican payroll tax holiday plan 234 to 193 Tuesday, delivering little more than a political message to the Senate and White House, which have both vowed to reject the measure.” (Politico Breaking News, 12/13/11)

OBAMA HAS INSTRUCTED SEN. REID TO SHUT DOWN THE GOVERNMENT OVER POLITICAL CONCERNS

Reid And Obama Are Set To Reject The Bill Over The Keystone Pipeline. “Reid and Obama both have said they would reject the House Republican bill on the grounds that it would call for the administration to permit the Keystone XL oil pipeline from Canada to the Gulf Coast within two months.” (Manu Raju And Jake Sherman, “Payroll Tax Cut Faces Bumpy Finish,” Politico, 12/12/11)

• 47 Democrats Have Voted In Favor Of The Keystone Pipeline. “Republican leaders have noted that 47 House Democrats have voted in favor of the Keystone pipeline, and Boren, who is retiring next year, cited the provision in announcing his support.” (Russell Berman, “GOP Vies for High Ground On Taxes,” The Hill, 12/12/11)

Obama And Harry Reid Are Threatening To Shut Down The Government If Republicans Approve Their Payroll Tax Cut Package. “A massive year-end spending deal hung in the balance late Monday as a frustrated Senate Majority Leader Harry Reid sought to use the package to win more cooperation from the Republican House on the question of extending payroll tax breaks backed by President Barack Obama.” (David Rogers, “Spending Bill Hostage In Payroll Tax Fight,” Politico, 12/12/11)

• “It Has Not Yet Gotten To The Point That Senate Democrats Have Been Instructed To Not Sign The Conference Report, But That Implicit Threat Is Out There.” (David Rogers, “Spending Bill Hostage In Payroll Tax Fight,” Politico, 12/12/11)

Reid Is Insisting on Dealing with the Payroll Tax and Appropriations Bills “In Tandem.” “Standing in the way of any such exit is the need to also act on the spending bill, which the House Appropriations Committee had hoped to file Monday night. Instead in a Capitol meeting with Boehner on Monday, Reid was described as demanding some better understanding first that the two year-end packages - appropriations and the payroll tax - will be dealt with in tandem.” (David Rogers, “Spending Bill Hostage In Payroll Tax Fight,” Politico, 12/13/11)

• Reid’s Actions Reveal His Pent Up Anger, But It Is Unclear How Much Leverage He Has. “How much leverage the Democratic leader truly has is unclear. The government is due to run out of money again Friday, when the latest stopgap continuing resolution expires. And the House and Senate Appropriations committees have a huge institutional investment now in seeing the bill through - whatever happens in the payroll tax fight. Indeed, the maneuvering may be most revealing of the pent-up anger felt by Reid and shared by the White House.” (David Rogers, “Spending Bill Hostage In Payroll Tax Fight,” Politico, 12/13/11)

WHILE OBAMA AND DEMOCRATS WORRY ABOUT ELECTIONS, REPUBLICANS ARE THE ONLY ONES TO PASS A PLAN

House Republicans Are The Only Ones To Pass A Bill Extending The Payroll Tax Cut, Jobless Benefits And The “Doc Fix.” “Should House Republicans pass their plan, it would intensify pressure on Democrats, because it would be the only proposal in either body to extend the payroll tax holiday and jobless benefits and avert a scheduled cut in physicians’ Medicare reimbursements. All those items are considered ‘must-pass’ by the leadership of both parties.” (Manu Raju And Jake Sherman, “Payroll Tax Cut Faces Bumpy Finish,” Politico, 12/12/11)

Democrats Have Occupied Their Time Pushing A Plan They Have Known Can Not Pass Congress. “For the past several weeks, Democrats have been on the political offensive with a plan that would extend a payroll tax holiday and pay for it with with a surtax on incomes above $1 million. But they’ve known that plan can’t pass Congress over Republican opposition, and they now face the likely decision to drop the surtax in order to win GOP support.” (Manu Raju And Jake Sherman, “Payroll Tax Cut Faces Bumpy Finish,” Politico, 12/12/11)

• “Senate Democrats Haven’t Even Released Their Own Broad Plan To Extend The Payroll Tax Cut.” “Senate Democrats haven’t even released their own broad plan to extend the payroll tax cut and other major priorities — and they aren’t even sure how far they should go to compromise with Republicans.” (Manu Raju and Jake Sherman, “Payroll Tax Cut Faces Bumpy Finish,” Politico, 12/12/11)

Democrats Who Oppose The GOP Bill “Will Now Have To Explain A Vote Against A Bill That Carries Two Of President Obama’s Year-End Priorities.” “Democrats have put Republicans on the defensive over the issue, but members will now have to explain a vote against a bill that carries two of President Obama’s year-end priorities — a one-year extension of the payroll tax cut and an extension of unemployment insurance benefits.” (Russell Berman, “GOP Vies for High Ground On Taxes,” The Hill, 12/12/11)