Morning Bell: There is No Tax Deal

Conn Carroll / December 10, 2010

On Wednesday, Vice President Joe Biden reportedly told House Democrats that the tax deal cut with Republicans was a “take it or leave it” proposition that could not be changed. But by last night, after fierce opposition from his leftist base, President Barack Obama was singing a different tune, telling NPR: “My sense is there are going to be discussions between both House and Senate leadership about all the final elements of the package. Keep in mind we didn’t actually write a bill.”

Well now Senate Majority Leader Harry Reid (D–NV) has submitted a bill, and it is clear that negotiations are still very much open … at least for the left. Politico reports that in order to buy the votes of Senators Maria Cantwell (D–WA) and Barbara Boxer (D–CA), Reid added cash subsidies for wind and solar corporations that were originally part of Obama’s first failed stimulus. And Senator Tom Harkin (D–IA) was also able to trade his vote for more ethanol subsidies. Other “sweeteners” added to buy leftist Senate votes include subsidies for energy-efficient appliances and mass-transit benefits for employees.

And the legislation can only get worse. Yesterday House Democrats voted to oppose the Obama tax deal, with Speaker Nancy Pelosi (D–CA) telling Politico: “In the caucus today, House Democrats supported a resolution to reject the Senate Republican tax provisions as currently written. We will continue discussions with the president and our Democratic and Republican colleagues in the days ahead to improve the proposal before it comes to the House floor for a vote.” And by “improve the proposal,” Speaker Pelosi can only mean higher taxes and higher spending. (more…)