Senate GOP vows to halt action in lame-duck session until tax deal (updated)

[ProSense]

Senate GOP vows to halt action in lame-duck session until tax deal

By Michael O'Brien

Senate Republicans will block controversial legislation during the lame-duck Congress until a deal on tax cuts is worked out, according to a letter signed by every GOP senator.

In a letter to Senate Majority Leader Harry Reid (D-Nev.), Republicans said they would not agree to proceed on any legislative item until the Senate has acted to fund the government and prevent "the tax increase that is currently awaiting all American taxpayers."

Senate GOP Leader Mitch McConnell (R-Ky.) highlighted the new strategy in an interview with ABC. McConnell and other congressional leaders met with President Obama at the White House Tuesday to try to reach a deal on the tax cuts.

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"Anyone looking for the GOP's strategy in lame duck, here it is," said Jim Manley, the top spokesman for Senate Majority Leader Harry Reid (D-Nev.), on Twitter.

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GOP: Tax cuts for the rich or we'll kill the hostage.

Updated to add this from Mark Thoma:

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I think Republicans are misreading the message of the election, especially if they think it was a call to extend tax cuts for the wealthy. Democrats should say no, we're not giving in. If taxes go up for most people, it's the GOP's fault for not having the courage to fund the tax cuts when they were first enacted, and for refusing to go along with an extension for the majority of households.

If they are so worried about the "a job-killing tax hike" discussed in their letter (a distinctly Keynesian perspective by the way), then use the money gained from allowing the tax cuts to expire for the wealthy to fund an extension of the Making Work Pay tax cuts in the stimulus package that went to middle and lower class households. The GOP is refusing to extend the Making Work Pay tax cuts, apparently the jobs lost when taxes go up for the non-wealthy don't count. Since these tax cuts are likely to result in more spending than tax cuts for the wealthy, this would increase rather than decrease jobs. If the GOP really cares about jobs, they'll get on board. If they block the legislation, as they most likely would, then we'll see who is reading the "verdict" from the election correctly.

[ProSense]

1. House to vote Thursday

House to Take Vote Tomorrow on Middle-Class Tax Cuts, Democrat Hoyer Says

The U.S. House will vote tomorrow on extending middle-class tax cuts, Majority Leader Steny Hoyer said.

Lawmakers who are discussing the Bush-era tax cuts with the Obama administration have been urging a delay in any votes until the negotiators can meet.

The vote “should not undermine” the tax negotiations “nor is it intended to embarrass or put Republicans in a difficult place,” Hoyer, a Maryland Democrat, told reporters today in Washington.

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“It is a shame what we have agreement on is being held hostage by what we have no agreement on,” Hoyer said.

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