Blogs Derek's Tax Blog House Democrats Vote to Defy Obama on Tax Cuts
"This message today is very simple: That in the form that it was negotiated, it is not acceptable to the House Democratic caucus. It's as simple as that," said Democratic Congressman Chris Van Hollen. House Democrats defy Obama on tax cut bill – CNN Political Ticker - CNN.com Blogs
It has been a hectic few days since the tax compromise was announced Monday afternoon. With nearly everyone having something in the bill to complain about, it now appears that the lame duck session of congress will not address the tax bill that was going to extend the Bush tax cuts and address the estate tax issue. Apparently, House Democrats were not involved in the negotiation of the bill and were told no compromises or amendments were allowed, with VP Joe Biden telling them, “this is the deal, take it or leave it.” Given the choice, they decided to leave it.
The main stumbling block appears to be the estate tax provisions. House Speaker Pelosi called it “a bridge to far”. House Democrats estimate the cost to the Federal government to be $68 billion a year. Another estimate puts it at $55 billion for the two year term of the provision. Part of the difference could be on what base is used; the law as it would be if the estate tax wasn’t addressed or President Obama’s campaign promise.