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House Democrats Reject Obama Tax Cut Deal In Non-Binding Vote, Demand Changes

First Posted: 12/09/10 11:35 AM ET Updated: 05/25/11 07:20 PM ET

House Democrats Tax Cut Deal

Ryan Grim and Arthur Delaney contributed to this report.

WASHINGTON -- In a meeting on Thursday morning, the House Democratic caucus rejected the president's proposed deal on the Bush tax cuts but did not fully submarine the possibility of its passage, multiple sources tell The Huffington Post.

Members, by voice vote, passed a motion to reject the deal as currently written. The motion had been put forward by Reps. Peter DeFazio (D-Ore.) and Lloyd Doggett (D-Tex.) and was seconded, informally, by Reps. Chris Van Hollen (D-Md.), Marcy Kaptur (D-Ohio) and Jay Inslee (D-Wash.).

"It was an indication of disapproval and a rejection of the deal as currently written," said one House Democratic aide.

The vote, which was conducted with something less than a full caucus present, was as much a repudiation of the substance of the deal as the White House's handling of it. According to sources, several members spoke out about the provision that deals with the estate tax, calling it too generous to the wealthy in its current incarnation. But there was also evident frustration with the administration for essentially cutting House Democrats out of the negotiations.

"The White House f---ed up in how they rolled this out and this is a vote sharing that frustration," said one aide. "But it is not a deal killer."

DeFazio added, "They said take it or leave it. We left it."

"The House was not consulted during the negotiations that produced this package, and our support cannot be taken for granted now or in the future," said Rep. Raúl M. Grijalva (D-Ariz.), co-chair of the Congressional Progressive Caucus.

The vote is, indeed, non-binding. And if the White House were to revamp certain elements of the package, aides say that it would get Democratic support. That said, the White House is loathe to make any major changes, out of fear of alienating Republican members who now seem key to getting the deal passed.

Two Democratic members in the room confirmed to The Huffington Post that a counterproposal is being drafted.

Rep. Lloyd Doggett (D-Texas) said that while he cannot speak for Speaker Pelosi, "I don't think there's any doubt that she will follow the caucus." He added that nobody in the room spoke out against the resolution.

Rep. Shelley Berkley (D-Nev.) said she was the only member to vote in favor of the deal. She said she didn't think the vote would affect the final outcome. "It means nothing," she said. "I think it was a way to get on-record saying how disgruntled and unhappy we are."

Rep. Gene Green (D-Texas) told HuffPost that despite the resolution he would vote for the bill if it came to the House floor "very begrudgingly." He added, "I'd probably get up and badmouth it." Letting unemployment insurance benefits lapse, he said, was unacceptable.

Rep. Barney Frank (D-Mass.) told The Huffington Post that he figured the tax cut deal could not be kept off the House floor. He said the concessions from Republicans aren't really concessions.

"Unemployment shouldn't be considered a concession they give to us," he said, pointing out that Congress passed several unemployment insurance reauthorizations over GOP objections this year. "(Obama) should have helped us try to put some pressure on the Republicans to give in."

Roughly 800,000 unemployed people have already received notice that their unemployment benefits are prematurely over. That number will reach two million by the end of the month absent a reauthorization of federally-funded extended benefits programs that Congress allowed to lapse last week.

UPDATE: An earlier version of this story referred to Rep. Green as a "Blue Dog." He's not.

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Ryan Grim and Arthur Delaney contributed to this report. WASHINGTON -- In a meeting on Thursday morning, the House Democratic caucus rejected the president's proposed deal on the Bush tax cuts but di...
Ryan Grim and Arthur Delaney contributed to this report. WASHINGTON -- In a meeting on Thursday morning, the House Democratic caucus rejected the president's proposed deal on the Bush tax cuts but di...
 
 
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HUFFPOST SUPER USER
jimpager
10:00 PM on 12/16/2010
By God, Wall Street doesn't own them all...GREAT job Nancy !
Before this is over, we're gonna be talking about Nancy Pelosi...
Democratic candidate for President.

This tax cut for the rich, overtly a massive givaway to the rich,
was/is also covertly a heat-seeking missile with target acquisition and
lock on social security. Nancy just blew the heat seeker out of
the sky. Social Security is safe...for this night at least.

Leader's Lead. Now we see the difference between Obama the Wimp
and Nancy the Leader of America's progressive government.

Thank you Nancy. I didn't want to eat catfood so billionaires could
buy yet another Maserati.
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HUFFPOST SUPER USER
jimpager
09:07 AM on 12/17/2010
Oops. I know I saw it. Just for a moment I saw it. I really saw it. IT REALLY was there. Democrats showing backbone. It passed quickly. Like slop thru pigs.

Know any good deals on catfood?
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HUFFPOST PUNDIT
Matt Corbin
05:10 PM on 12/16/2010
Not sure if it's on my end of the site's end but i'm getting some wonky performance from this thread in particular when trying to leave a comment - not just your average 'oh i got modded'. Anyway, take 2:
 
In the age old battle between Madison and Aristotle as it relates to democracy recent history would tend to indiciate Madison didn't have a clue what he was talking about.
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HUFFPOST PUNDIT
Matt Corbin
04:55 PM on 12/16/2010
In the age old
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HUFFPOST SUPER USER
Freddd Green
07:55 AM on 12/13/2010
need to add stiff spending cuts to the bill
12:59 AM on 12/12/2010
I am trying to collect data for my new website www.money4cards.com.

If you are planning to buy some item worth $100 from "Bed Path and Beyond" for Christmas Gift, how much would you pay to buy a 20% off coupon.

Remember 20% off means $20 in savings for $ 100 item .
06:50 PM on 12/11/2010
How to balance the federal budget? Eliminate tax exemptions for religious institutions. Perhaps leave exemptions for actual houses of worship, but eliminate everything else.
This user has chosen to opt out of the Badges program
09:01 PM on 12/11/2010
Do you have some statistics?

Also need to include donations to atheist and seculars 501c3 orgs.
This user has chosen to opt out of the Badges program
09:12 PM on 12/11/2010
In general if the govt takes away tax benefits for charity what does that say about us as a people. Maybe that's where we have arrived.
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HUFFPOST SUPER USER
wolfess
power to the peons!
12:15 PM on 12/12/2010
Does taking away the tax benefits for charities say anything worse than taking away unemployment for families that have nothing else? Does it say anything worse than threatening to make a 69-year-old miner work past 70 in order to get any social security benefits? Does it say anything worse than refusing to give a life-saving surgery to a baby because the state of Indiana says medicaid can't provide it (see forbes.com -- rick ungar for this story)?
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HUFFPOST SUPER USER
scodwyer
04:27 PM on 12/11/2010
If this tax cut for the wealthy is extended, it will be for eternity and everyone knows it. It would mean they would cut medicare/medicaid/social security/education/infrastructure/ and for what?! A bunch of bilmillionaires who don't even need it? And I am not talking about the people who make 250k either. Let's just not extend any of the tax cuts for anyone. REALLY! Then let us see how most Americans would think of the repubs for not extending unemployment insurance which is not the fault of the unemployed, but the corrupt banks and wall street which once again, no matter what party, are the filthy greedy rich. Yes, there are some who have a conscience, like Gates and Buffett, and the rest of you know who you are....SOCIOPATHS.
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treadway123
treadway123
04:13 PM on 12/11/2010
Obama thinks we will forget this manuver by 2012 elections, we will NOT----But we will ALSO remember the Dem's caved/Republicans Blackmailed Americans/this President! It's time for a true INDEPENDENT/GREEN PARTY----I did NOT say a T.P or the likes of Sarah Palin/Newt etc.either.
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thinklib
I will not mince words.
06:00 PM on 12/11/2010
Yeah right.

You'll line up like the rest of the lemmings and vote for the Democrat candidate no matter who it is.

Brainwashed hatred for the GOP trumps everything else.
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OLJW00
right is right
09:51 PM on 12/11/2010
fanned for speaking the truth
07:29 PM on 12/11/2010
Because an INDEPENDEN­T/GREEN PARTY sure can't be worse than we got now.
If the Repubs take the WH again Third World countries move over.
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OLJW00
right is right
09:51 PM on 12/11/2010
move over where? (and why)
HUFFPOST SUPER USER
georgieboyme
03:56 PM on 12/11/2010
Let's all get a grip on reality. The Dems will do exactly what they always do "cave." That is the only thing they're good at. So, this little song and dance about resistance is just a performance for the benefit of the American public. Caving they will.
01:59 PM on 12/11/2010
I do not understand how the Republicans can say that NOT to extend the Bush tax cuts for the wealthiest 2% of the population is a tax increase and will hinder job growth, when that same 2% have enjoyed those tax cuts since 2001 & 2003 respectively and not one job was created is just BS. I've been a strong supporter of Obama since he ran for Senate in '04, but I have to say I'm getting tired of him and most of the Democrats, "pissing down my back and telling me it's raining out," and that they can't pass a better bill with the majority that they hold. Adding almost $200 Billion a year so the richest 2% can have a tax break, compared to $60 Billion a year to fund unemployment for another 13 months is, in my mind, a no brainer.
06:40 PM on 12/11/2010
Let us see.

The rich control the flow of capital needed by business to expand and hire people. So taking money that could be used to finance business expansion is blown by some liberal in DC on a favorite pet project.
bert70
I'm now 74, time flies when your having fun.
07:27 PM on 12/11/2010
Boulderintellectual; The rich control the flow of capital? Where do they control it to, their own bank account. You're a intellectual? Are you aware that they have had this tax reward for the last 10 years? They have increased job during the Bush Regime by 0.28 % Wow , that sure was wonderful wasn't it? less than 3 million jobs, Pres. Obama's stimuless has created more than 3 million in 2010. Do you concentrate od Fox Noise?
01:41 PM on 12/11/2010
I have been on UI since Sept 1st 2008 and I am still receiving to this day. I am at week 113 if I added them all correctly. I thought the cut off was 99 weeks.? Anyone know why I am still getting bennies? I live in Tennessee. Thank You
HUFFPOST SUPER USER
treadway123
treadway123
04:22 PM on 12/11/2010
Sarah Palin said ONE truethfull thing that I can see------It's time to load/reload on BOTH our Political parties in Washington an tell them enough is enough! We will begin to vote for ALL INDEPENDENT/ w/Caucus of their own/Party of their own--------answereing to niether party! The time is now, an the time is right! NO more beinging held hostage or being blackmail.
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HUFFPOST SUPER USER
keepemguessing
Proper gun control means using both hands.
10:49 AM on 12/11/2010
Loved the "spear carrier for the president" comment that Defazio made... too bad he's not a repub making that kind of comment or it would get more press and he'd be out of job.
martman1
retired business owner
10:26 AM on 12/11/2010
Sen McCaskill is sending e-mails urging people to sign a petition in favor of letting all the bush cuts be extended and pledging to fight "next time".

I, for one, didn't sign but instead sent her an e-mail saying fight now and let them all expire if need be - go after cuts for 98% later if we have to.

I would urge any like-minded people do the same. - it probably won't help but who knows?

We MUST begin to break the grip that the wealthy elite have on our nation. If not now, then when? If not us, then Who?
martman1
retired business owner
10:30 AM on 12/11/2010
P.S. Her effort must be national, as I don't live in Missouri.
09:45 AM on 12/11/2010
BILL CLINTON SIMPLY represents the usual, shameles compromise of principle. As the right moves more right, obviously the center is more right and you are more like them: the only
way to be right, and not Right, is to stay with a principle. The Principle of the Democratic party
is to say wealth of the people generates wealth, and the people deserve a chunk of the pie.
The pie right now is not in the Baker's shop, but in the hands of an incredibly wealthy few who
control the country.
In the long run---a favorite run for Obama logic--in the long run, the GOP will devastate the
Democrats who cave in---one demand will follow another as Terrorists do--and the already
"plucked goose" of Healthcare along with Soc Sec, Medicare and anything approaching
education for lower brackets will be obliterated. And 2012 will have billions to defend that
marvelous "return.
Now is the time to fight by blocking as Sen Sanders does, and by big fat veto"s from a
President who is afraid to open the top-left drawer, and sign a NO,NO,AND NO.
UNTIL then, this is all a charade to get what amounts one more "stimulus" pack,
and a lousey stimulus at that fully capable of getting us past Xmas and Santa with Christ
pretty much left out. He was dangerous-==he told the "experts" WITH WHAT MEASURE
YOU MEASURE, IT WILL BE MEASURED UNTO YOU.
James McCormick
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HUFFPOST SUPER USER
rjakjr
Saving the world... or at least 72.6% of the US!!!
06:06 AM on 12/11/2010
President Obama has what I'm still trying to kick... pleaseEVERYONEitis. He just needs to wake up and realize what party he's part of and put the GOP in their place. He's got 41 days, not counting working days which would make the number a lot smaller, to get everything completed from his to-do list before it becomes virtually hopeless with the GOP majority in the House. Two things are immediate: kill off Don't Ask Don't Tell and let the Bush Tax Cuts expire. DO IT!!!