The Free Press, Mankato, MN

State, national news

January 1, 2013

Cliff avoided: Congress staves off tax hikes

(Continued)

WASHINGTON —

Even with enactment of the legislation, taxes are on the rise for millions.

A 2 percentage point temporary cut in the Social Security payroll tax, originally enacted two years ago to stimulate the economy, expired with the end of 2012. Neither Obama nor Republicans made a significant effort to extend it.

House Republicans spent much of the day struggling to escape a political corner they found themselves in.

“I personally hate it,” Rep. John Campbell of California, said of the measure, giving voice to the concern of many Republicans that it did little or nothing to cut spending.

“The speaker the day after the election said we would give on taxes and we have. But we wanted spending cuts. This bill has spending increases. Are you kidding me? So we get tax increases and spending increases? Come on.”

Cantor told reporters at one point, “I do not support the bill. We are looking, though, for the best path forward.”

Within hours, Republicans abandoned demands for changes and agreed to a simple yes-or-no vote on the Senate-passed bill.

They feared that otherwise the Senate would refuse to consider any alterations, sending the bill into limbo and saddling Republicans with the blame for a whopping middle class tax increase. One Senate Democratic leadership aide said Majority Leader Harry Reid would “absolutely not take up the bill” if the House changed it. The aide spoke on condition of anonymity, citing a requirement to keep internal deliberations private.

Despite Cantor’s remarks, Boehner took no public position in advance of voting the bill as he sought to negotiate a conclusion to the final crisis of a two-year term full of them.

The brief insurrection wasn’t the first time that the tea party-infused House Republican majority has rebelled against the party establishment since the GOP took control of the chamber 24 months ago. But with the two-year term set to end Thursday at noon, it was likely the last. And as was true in earlier cases of a threatened default and government shutdown, the brinkmanship came on a matter of economic urgency, leaving the party open to a public backlash if tax increases do take effect on tens of millions.

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