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Congress gives Americans a tax hike for Christmas

By SAM HALL
December 20, 2011

Congress heads home for Christmas but the holiday gift it left for Americans is an almost-certain tax hike for the new year.

As predicted by the tea party-controlled Speaker, House Republicans defeated a two-month extension of reduced payroll taxes on Social Security and extension of unemployment benefits.

Then House member started packing for the trip home, joining the Senate, which left town after passing a funding compromise that provided the two-month extension.

House Speaker John Boehner first backed the Senate bill but — under pressure from tea party backed Republicans — reversed his position and declared the measure dead in the House.

With Republicans falling into line, the House defeated the extension 229-13 and Boehner delivered an ultimatum to the Senate: Come back to town and agree to a year-long extension on our terms are Americans pay the price on Jan. 1.

Senate leaders say they won’t play that game.

“The Senate has recessed for the year, end of story,” an aide to Senate Majority Leader Harry Reid told Capitol Hill Blue.

President Barack Obama says the House needs to accept the Senate compromise and work on a longer extension after the first of the year.

“Let’s be clear,” Obama said Friday. “The bipartisan compromise that was reached on Saturday is the only viable way to prevent a tax hike on Jan. 1.  The only one.”

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5 Responses to Congress gives Americans a tax hike for Christmas

  1. Almandine

    December 21, 2011 at 12:25 pm

    Not to worry, folks… that piddling tax issue will quickly fade into the evolving chaos.

    http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/12/TRoad25.pdf

  2. Carl Nemo **==

    December 21, 2011 at 1:05 pm

    Regardless of the ugly aspect of raising taxes, it’s actually necessary concerning the SS Trust Fund.

    It’s in trouble and the last thing to do is to continue deductions at the lesser rate.

    There was a 28 billion shortfall last year forcing the SS administration to cash in some of those ‘Treasury IOU’s’ from past presidential pilferage and this year the shortfall was projected to be 130 billion etc., increasing into the future. Since they fail to do what’s necessary by raising the level of income subject to deductions, the last thing to do would be to continue the reduced deductions. They need to do both in order to make the fund self-sustaining and liquid into the future without the need to continually cash in these past ‘IOU’s’ in the worst of times for this nation.

    Carl Nemo **==

  3. Rick

    December 21, 2011 at 1:32 pm

    We hire folks to do a job and place a bit of trust in their collective abilities to address the number one issue of keeping the fiscal house in order. They have failed and have for decades. The incessant finger pointing has worn American nerves to the point of where the pitchforks and torches are being readied.

    They seem to have the acumen of Bernie Madoff and the accounting credibility of Enron.

  4. Sandune

    December 21, 2011 at 6:22 pm

    Rick, every two years we send our house members back and the problems go on endlessly. Nothing will ever change until we rid the Congress of the same old same old critters. Searching for what it is that we DO want and then organizing and working for these chsnges is the only way to solve the problems. Look outside the internet and hit the smaller groups who agree with those changes.

    I’ve headed up many programs of unseating many Housemembers and did it through the use of my mailing lists and postcards. It took the better part of a year to get rid of a bad House Member but we did it. People are not as focused today as they were back in the 1970s

  5. John

    December 24, 2011 at 10:11 pm

    Congress is rife with irresponsible people running this country. The game of kick the can down the road has to stop immediately. I can’t even see the difference of a Republican or Democrat anymore. The line is blurred so much between the two that when one is in power, they get what they want and visa-versa. Yet, both are being played by pretty much the same lobbyists and special interest groups. 2012 is shaping up to be a wild ride and voters need to stop being spoon-fed by the media and who they should vote for. Do your own research.