what the rahtid Obama a gwaan wid

[Assasin]

Senate showdown may pave way for year-end tax deal




By DAVID ESPO, AP Special Correspondent David Espo, Ap Special Correspondent – 26 mins ago
WASHINGTON – Senate Republicans derailed legislation Saturday to extend [COLOR=#366388 !important][COLOR=#366388 !important]expiring [COLOR=#366388 !important]tax [/color][COLOR=#366388 !important]cuts[/color][/color][/color] at all but the highest income levels in a political showdown that paradoxically clears a path for a compromise with the White House on steps to boost the economy.
"We need to get this resolved and I'm confident we can do it," President Barack Obama said shortly after the near party-line votes. The public must have "the peace of mind that their taxes will not go up" on Jan. 1, he added.
Obama has signaled that he will bow to [COLOR=#366388 !important][COLOR=#366388 !important]Republican [COLOR=#366388 !important]demands[/color][/color][/color] for extending tax cuts at all income levels, and his remarks capped a day that lurched between political conflict and talk of compromise on an issue that played a leading role in last month's elections.
Sen. [COLOR=#366388 !important][COLOR=#366388 !important]Chuck [COLOR=#366388 !important]Schumer[/color][/color][/color], D-N.Y., eyeing the 2012 campaign, accused Republicans of siding with "millionaires and billionaires" with their rejection of proposals that would let tax cuts passed during George W. Bush's presidency lapse on seven-figure incomes.
Republicans noted that unemployment rose to 9.8 percent last month and said it made no sense to raise taxes on anyone in a weak economy. Sen. Jon Kyl, R-Ariz., jabbed that Democrats were undergoing a "political catharsis" in public after losing control of the House and surrendering several seats in the Senate in the Nov. 2 election.
But the rhetoric subsided quickly after the votes, and Senate leaders in both parties said they hoped political clashes would give way to compromise in the next several days.
Kentucky Sen. Mitch McConnell, the GOP leader, said he was relatively confident there would be a [COLOR=#366388 !important][COLOR=#366388 !important]deal [COLOR=#366388 !important]with [/color][COLOR=#366388 !important]the [/color][COLOR=#366388 !important]White [/color][COLOR=#366388 !important]House[/color][/color][/color] "not to raise taxes in the middle of a recession." He said talks were continuing on the length of an extension to be enacted for the cuts that were put in place in 2001 and 2003.
Senate Majority Leader Harry Reid, D-Nev., said he hoped for an agreement by the middle or end of next week on legislation that would combine an extension of tax cuts with a renewal of expiring jobless benefits for the long-term unemployed.
Officials have said that in addition to tax cuts and [COLOR=#366388 !important][COLOR=#366388 !important]unemployment [COLOR=#366388 !important]benefits[/color][/color][/color], the White House wants to include renewal of several other tax provisions that are expiring. They include a break for lower- and middle- class wage earners, even if they don't make enough to pay the government, as well as for college students and for companies that hire the unemployed.
Obama later spoke with Reid and [COLOR=#366388 !important][COLOR=#366388 !important]House [COLOR=#366388 !important]Speaker [/color][COLOR=#366388 !important]Nancy [/color][COLOR=#366388 !important]Pelosi[/color][/color][/color]. A White House official said the president told them he was open to a temporary extension of the tax cuts if the Democratic priorities were included in the deal.
Key lawmakers and administration officials have been at work negotiating the terms of a possible deal for several days.
But many congressional Democrats privately have expressed anger at Obama for his willingness to surrender to Republican demands to let the tax cuts remain in place at upper incomes, and numerous officials said no compromise would be possible until they had engineered votes in both the House and Senate.
Any deal would mean a reversal for Obama, who said in the 2008 presidential race and this year that he wanted to let cuts expire above incomes of $200,000 for individuals and $250,000 for couples.
In the Senate, a bill to enact Obama's original position was blocked on a vote of 53-36, seven votes short of the 60 needed to advance. Republicans were unanimous in their opposition, and were joined by Democratic Sens. Russell Feingold of Wisconsin, Joe Manchin of West Virginia, Ben Nelson of Nebraska, Jim Webb of Virginia and independent Joseph Lieberman of Connecticut.
The second measure would have let taxes rise on incomes over $1 million. It appeared crafted to appeal to senators from states with large high-income populations, as well as cast Republicans as protectors of the rich.
It was blocked on a vote of 53-37, also seven short of the 60 needed. A slightly different lineup of Democrats sided with Republicans, including Sens. Dick Durbin of Illinois, Tom Harkin of Iowa, Jay Rockefeller of West Virginia and Feingold. Lieberman also opposed it.
The White House opposed the second measure bill, and given the president's willingness to sign a bill to extend all the expiring tax cuts, there was never any doubt about the outcome of the day's proceedings in the Senate.

But Democrats said that even with elections nearly two years away, they intended to try and depict Republicans as defenders of the rich whose policies contribute to rising deficits.
"Do we want to extend those tax breaks for millionaires and billionaires at a time of huge deficits. I would argue vociferously we shouldn't, said Schumer.
Referring to the 2012 elections, he said about Republicans: "I'm going to be here for the next year, next two years, to remind my colleagues that they were willing to increase the deficit $300 billion to give tax breaks to people who have income over a million dollars."
Republicans sounded alternately bemused and offended.
"It is the most astounding theory I have ever seen. Raise taxes to create jobs," said Sen. John Thune, R-S.D.
Sen. Orrin Hatch, R-Utah, said Democrats perhaps viewed the votes as a gift to their political constituents. But, he added, "two years of wall to wall Democratic rule has only made the situation worse" in the economy.
The day's events capped a week that included a meeting at the White House at which Obama and top congressional Republicans sat down together for the first time since the elections.
Both the president and GOP lawmakers pledged afterward they would try to work together for the good of the economy, and agreed to set up a small negotiating group to discuss the tax issues.
The White House, Reid and Republicans have been negotiating quietly, and McConnell made a point of saying he had been in frequent touch with the administration in recent days.
In addition to tax cuts, Obama has made ratification of a new arms control treaty with Russia a priority of the postelection session of Congress, reducing his leverage with Republicans in the struggle over taxes.
Senior Senate Republicans have indicated they will not try to interfere with a debate on the issue as long as government spending and tax cut issues have been resolved to their satisfaction. A two-thirds majority is required for ratification, meaning the White House will need the support of at least nine Republicans to prevail. Vice President Joseph Biden and other officials have been involved in talks with several GOP senators in hopes of lining up the votes needed.

[Islandman]

As expected, tax cuts have been extended. No surprise.

[Assasin]

The liberal base is upset and they have a right to. They freeze federal workers salaries, and will be wheeling the axe . What exactly did the Dems get out of this? They wouldn't even raise the tax on the top .3 percent.

How are we going to cut the deficit? Obama have a uphill task ahead of him.

[Islandman]

Well, they got them to agree to extend the unemployment insurance for a while longer. I guess they figure thier voters would be even more upset if they lost that. Come election time in 2 years both sides will campaign on wether to make them permanent.

The deficit will continue to grow for while.

[Assasin]

"The deficit will continue to grow for while."

How long is that. You really think Obama going to raise taxes right before the next election? The fact that he campaigned so much on turning around the Bush tax cut is disappointing to go the republican way without getting nothing in return.

The fact is the Republicans think they have him soft and watch them come out swinging to cut Social Security, Federal government and other poor people subsidies and watch them go after repealing healthcare because they think Obama will not stand up.

[Islandman]

It will grow until politicians start losing re-election because of it. That is the only thing that they pay attention to.

No taxes will be raised until after the next election, probably not after that either if Repbulicans win. What will happen is that it will be an election campaign issue. Unfortunately for Obama he has now lost credibility where this is concerned.

I am not particularly disapointed, I would have voted to keep some of the cuts in place even if they benefit the so-called rich (which $250K a year is not). I want to see some tax increases where it makes sense and some cuts in Federal govt programs, as many need to get reformed because they are abused and do not work well.

As it stands today neither of those will be done, so larger and larger deficits here we come. Every day the bucket go a well, one day......

[Willi]

Payroll tax cut too. $1000 average gain inna ordinary people's hands. Stimulative.

[MdmeX]

Payroll tax cut too. $1000 average gain inna ordinary people's hands. Stimulative.

Show me the money.......... dat's why mi hand middle a scratch me

[Baddaz]

i-man, just a point for emphasis... as you correctly stated, 250k per yr is not rich... democrats aren't saying that... it is the republicans who are saying that at every opportunity... if a person makes 250k or less they would not have seen an increase... the increase would have only been applied to the amount >250k... if a person makes 260k, only the 10k would be subject to the higher tax... the repubs managed to spin that one like a googly and scare the people... i saw where the amount of increase to a millionaire would only be about $700 a year... thats peanuts for a 83k per month salary... saw that on
cbs news with katie couric... even if i didn't hear too well and it was an increase of $7000/yr we are only talking 500+ a month on $83k a month... the repubs are unconscionable...

[Baddaz]

the is what else could obama have done given the situation on the country... A large section of his base is unemployed... it coming up to christmas holiday and he has to take care of the people... the repubs owners of businesses are conspiring to freeze hiring across the board to get the people to revolt against the president... repubs are committed to 'no'... the president realizes that and is working on a new strategy... he had no choice but to compromise on the tax cuts extension... in two years the deficit will have increased and the rich will stand no chance when that time comes...

[Lazie]

So, how will all these cuts be paid for? Everybody bitching bout the deficit and debt, they asked how will the unemployment benefits be paid for, yet all these tax cuts are extended?

[Assasin]

many liberals are feeling he showed his hand too early and got nothing in return. Who is he going to raise tax on if he can't raise it on the rich. Watch next year how the Repub them going to make an assault on social program. This is just a pretex to come, next the Repub is going to come and say the deficit too big and no tax increase so look for federal employee, social security, medicare and them things to all be on the cutting table.

Obama need to show a willingness to fight, not to compromise and get nothing in return. This is also about getting Obama out of office in the next election so if he fail to connect with his base then he is in trouble. The campaign start for the Repub.

[Assasin]

you better find something fi do wid that hand cause you nah get nuh money unless you join the <250 crew.

[Islandman]

Both sides playing that game, talking bout the deficit when it coems to the proposals they oppose but ignore mentioning it for those they want.

To answer your question, they will NOT be paid for. They will increase the debt limits, borrow some more, and keep the party going.

[Islandman]

Why you keep sayign they got nothing? Unemployment insurance don't count? It was not a guarantee for them to be extended.

look for federal employee, social security, medicare and them things to all be on the cutting table.

Again, some of those NEED to be cut, and if not cut they need to be reformed like Clinton did with welfare reform. You know how much medicare fraud out there? Staggering numbers.