Despite losing a pair of votes on Saturday, and increasing signals from the White House that President Obama is looking to strike a deal with Republicans, Senate Democrats showed no signs of backing down on taxes.
Sen. Charles Schumer (D., N.Y.) went so far as to suggest that Democrats could allow all of the Bush tax cuts to expire at the end of the month if they don’t get their way. Speaking to reporters following the failed votes, Schumer said his party would continue to resist GOP efforts to extend all of the Bush tax rates, even if it meant prolonging the debate into next year (or longer).
“We’re not giving up – three days, one week, two months, six months – this is going to be a major issue throughout the next two years of this congress,” Schumer said, indicating that there was significant support for such a strategy among his colleagues. “There’s a lot of people in our caucus who have that appetite,” he said.
Sen. Sherrod Brown (D., Ohio) predicted that Republicans would be the ones pressured to cut a deal. “We expect two, three, four, five,10 Republicans to peel off because they really don’t want to be on the wrong side of this thing,” he said.
Other Democrats used strong language to denounce GOP opposition to the proposals voted on Saturday – one that would extend current tax rates on income up to $250,000 and another introduced by Schumer that would extend the rates on incomes up to $1 million. Republicans insist that the rates be extended across all income levels.
Sen. Frank Lautenberg (D., N.J.) said the failed vote was a “great American travesty,” an “outrage.” Sen. Ben Cardin (D., Md.) said it was a “sad day for the Republican party.” Sen. Al Franken (D., Minn.) repined and bloviated. Sen. Sheldon Whitehouse (D. R.I.) slammed Republicans for endorsing a “brutal theory” of economics. Sen. Mark Begich (D., Alaska) said extending all rates would amount to a”$700 billion bonus check” for the super-rich.
The ramped-up rhetoric underscores the blatantly political motivations behind what Senate Minority Leader Mitch McConnell called “show votes.” Neither measure had any real chance of winning the 60 votes necessary to invoke cloture. Even the Obama Administration has indicated a willingness to temporarily extend all tax rates as part of a tit-for-tat with the GOP, possibly tied to an extension of unemployment benefits. The White House is currently overseeing bipartisan negotiations – led by Treasury Sectretary Tim Geithner – to resolve the issue.
Senate Republicans have vowed to block any legislation until all the tax rates are extended. McConnell said at a press conference Saturday that Republican leaders had been in frequent contact with the White House, and remained confident an agreement involving a full extension would be reached soon. “I think it’s a healthy sign,” he said. “There’s probably been more conversation between the White House and Senate and House Republicans in the last two weeks than in the last two years.”
Odds are the White House wins this stand off — if Schumer and company actually mean what they say – but some Senate Democrats have made no secret of their frustration with Obama’s handling of the tax issue. Stay tuned.