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Why The Payroll Tax Cut Is In Jeopardy
Top Democrats are openly calling into doubt the chances that Congressional negotiators will reach an agreement to renew the payroll tax cut before it expires at the end of the month. The culprit, they say, is a deep schism within the Republican conference over whether the the tax holiday is a good policy or just a political gimmick to help President Obama win re-election.
The consequences of failure would result in a typical middle-class worker taking home about $1000 less this year, just as demand is starting to return to the U.S. economy and the unemployed are beginning to find work. Democrats, sensing political momentum from improving economic conditions, are warning Republicans that they'll be held to account for the consequences if the tax cut ultimately lapses.
"Time is wasting, so that I'm very concerned about it, and whether or not they can get to agreement is in doubt at this point in time," House Minority Whip Steny Hoyer told reporters at his weekly Capitol briefing Tuesday. "Democrats want to see the economy grow, and there are some here, frankly, who are just as satisfied to have the economy not grow, not create jobs, not have GDP growth, so it can help their politics."
Many prominent GOPers either oppose the extension, or support it reluctantly, and then only on the condition that Democrats pay some sort of political price for...
