Congressional Republicans are looking to change the subject, following a long, drawn out battle over cuts in 2012 taxes. They are doing so by pushing for new legislation, that they propose will promote transportation and energy projects, not only creating jobs but also cutting taxes for cash-strapped businesses.
On the other side, Democrats are hoping to continue their winning record by pushing Republicans to vote on jobs programs that would be financed by increasing taxes on the rich. During an election year, this might just be a winning strategy.
The parties’ differing uses of legislative power serve to emphasize the conclusions that each party took away following the brawl over new payroll taxes, which ended only when Congress finally passed on a $143 billion package to President Obama. The bill also included a payroll tax cut of 2%, and provisions to preserve extended unemployment benefits for those who have been unable to find a job in the long-term. An additional provision will prevent Medicare from decreasing payments to participating doctors.
Until the Republicans dropped their, previously ardent demands for hefty spending cuts, the Democrats had succeeded in presenting the opposing party as opponents of a tax break that would benefit most middle-class Americans. Not a good spot for the Republicans to be in during an important election year.
This puts the GOP in a position where they feel that they need to get the voter’s attention focused on other issues. In this case, they point primarily to what they cite as the failure of President Obama’s jobs and economic stimulus plans.
To this end, House GOP members are working hard to push threw bills that put job growth at the top of the agenda. Examples of this strategy include a $460 billion dollar transportation bill that is linked to additional oil drilling legislation.
But the odds of them passing this legislation, particularly a bill that addresses oil billing, are almost zero. Nonetheless, House Republicans will continue to present themselves as the pro-job party.
- Extension On Payroll Tax Cuts Made Because Of Rare GOP Offer (2012taxes.org)