Mon, May 28, 2012, 5:40 AM EDT - U.S. Markets closed for Memorial Day

Analysis: A quiet surrender for the GOP this time

Analysis: 'Get it off the table' _ eager to cut losses, GOP surrenders quietly on payroll tax.

WASHINGTON (AP) -- A united House Republican leadership surrendered crisply and cleanly on legislation to extend expiring payroll tax cuts for 160 million Americans, skipping most if not all of the self-defeating drama that accompanied their far noisier retreat on the same issue late last year.

In doing so, they helped avert an election-year tax increase on the middle class as well as the blame Democrats surely would have sought to pin on them for hampering an economic recovery.

Yet they also handed President Barack Obama an unambiguous political victory as he campaigns for re-election.

And perhaps most strikingly, because the tax cuts are not offset by spending reductions, the tea party-backed majority quietly acquiesced to a $101.1 billion increase in the deficit for the current fiscal year, wiping out billions in short-term reductions in red ink that it won in a series of pitched political battles in 2011.

"The mood is to get it off the table," freshman Rep. Dennis Ross, a Florida Republican, said this week of the measure that is expected to clear Congress in the next day or so. "We've got to move on to another issue."

Across the Capitol, Sen. Lindsay Graham, R-S.C., said the legislation to keep the payroll tax cuts in place was an exception rather than a new rule. "Not going to do this again, but if it gets us through the year, gets this issue off the table, it's worth doing this way," he said.

In fact, some conservatives argue that tax cuts lead to greater economic growth and therefore do not increase deficits. Others argue that, at a minimum, they require additional borrowing by the government and weaken Social Security as a result.

No matter the view, the relative lack of controversy showed a House GOP chastened by the outcome of a different sort of showdown last December.

Then, the bill is question was a mere two-month extension of tax cuts, fully offset by spending cuts. Digging in their heels, they demanded an alternative that lasted to the end of the year, and wound up being pilloried by Obama, congressional Democrats and even some Senate Republicans for risking a tax hike on Jan. 1.

"In the end House Republicans felt like they were re-enacting the Alamo, with no reinforcements and our friends shooting at us," veteran Republican Rep. Kevin Brady of Texas said then.

No one is likely to say that now, although Newt Gingrich, the former House speaker now seeking tea party support for his presidential run, declined to say if he favors or opposes the bill.

"I would have found an offset," he said in a comment relayed through his spokesman, R.C. Hammond, indicating he was less than completely supportive.

Former Massachusetts Gov. Mitt Romney's campaign did not respond to requests for comment over two days, and there was no immediate response from a spokesman for former Sen. Rick Santorum.

The bill in question fulfills key ingredients of Obama's jobs package, initially laid out last September. The 2-percentage point payroll tax cut that had been set to expire on Feb. 29 will now run until the end of the year. That's worth an extra $20 a week in the average American paycheck.

Unemployment benefits that were due to phase out beginning at the end of the month are similarly extended through the end of the year, although Republicans won some concessions.

The fees paid to doctors who treat Medicare patients will remain stable for the duration of 2012 as a result of the legislation, rather than plunge by 27 percent as they would have without an agreement.

It had been clear for months that all three provisions would be extended, but the two parties have been at odds for months over steps to offset the costs.

In the public relations war that played out late last year, Republicans said Democrats wanted to raise taxes to cover the cost, while Democrats said Republicans wanted to cut Medicare.

Democrats countered that they only wanted the wealthy to pay their fair share of taxes, and Republicans said they had no intention of cutting benefits for millions of seniors.

It was a politically charged deadlock that defied solution in December, and again when the two sides picked up the negotiations after the first of the year.

In the end, Republicans decided it wasn't worth the struggle.

Speaker John Boehner, Majority Leader Eric Cantor and House GOP Whip Kevin McCarthy announced they would introduce legislation to extend the tax cuts — minus any provisions to protect the deficit — and coupled their retreat with an accusation that Democratic "obstructionism and stonewalling" had made them do it.

As politically significant as the message was the roster of messengers.

The standoff last December exposed rifts within the leadership — particularly between Boehner and Cantor and their aides — that prompted protests from members of the rank and file, according to numerous officials.

That led to quiet efforts to repair relationships.

And a more public campaign to put responsibility for the weak economy back onto Obama.

"Last fall, I said that the only reason we are even talking about a payroll tax break or an extension of unemployment benefits is because the president's economic policies have failed," Boehner said at a news conference as the final details were ironed out.

"I still believe that to be the case today."

___

EDITOR'S NOTE — David Espo is AP's chief congressional correspondent.

 

40 comments

  • Daemonicus  •  3 months ago
    It is not going to matter anyway. The debt crisis is still going to happen.
    • A Yahoo! User 3 months ago
      I wish you wre wrong.
    • William 3 months ago
      He's not the end is near...
  • JJ  •  Marietta, Georgia  •  3 months ago
    When the social security fund is already in the "red" (negative cash flow), why doesn't the media ask why Obama is making it worse? It sounds great politically that everyone gets an extra $20 or whatever, but how are we going to fund future retirees when Obama is handing out the money like Santa Claus?
    • ex 3 months ago
      Because Obama is the great Black Messiah and he can will anything!
  • PoorPatriot  •  3 months ago
    It's an exception! We'll never do it again. Yeh! That from an exceptional government!
  • Hoggy  •  3 months ago
    I can not honestly vote for either party this election. They are selling us all down the river so they can steal a few coppers off the top.
  • denise  •  3 months ago
    I guess the Republican Congress thought that their 10% approval rating might go even lower. So they quietly agreed to raising the deficit by $101bil!
    • Aaron 3 months ago
      What's a $101 billion among friends???
  • Kurtz  •  Columbus, Ohio  •  3 months ago
    A tax cut to working people -- Oh my! Why they'll just spend it on things like food and clothing! Billions to corporations -- that's different ....
  • Thomas  •  Elmhurst, Illinois  •  3 months ago
    Thank you Republicans for not derailing the recovery. We can all be Americans. Leave the social issues for discussion at church.
    • 4RAVENS 2 months ago
      yeah just put it on obamas gold card
  • tlb  •  Austin, Texas  •  3 months ago
    I think it only fair that the front-runners for the GOP be asked again to comment on this; doesn't the electorate deserve to know their thoughts? Don't they want to be, um, PRESIDENT? Boehner has his "the President's economic policies have failed" sword out -- he's either going to cut the President down with it between now and November, or die on it (the latter looks more likely according to the latest economic stats), and it does make sense in a way, because that's all he's got.
  • Jay  •  3 months ago
    Some would call this "compromise" or "reaching across the aisle". The leftist media calls this surrender. Typical.
  • HSS  •  3 months ago
    Letting workers keep more of their wages is an incentive to work.. Now bring back the jobs.
  • CH1306  •  Philadelphia, Pennsylvania  •  3 months ago
    WOW. A compromise. Mark this one down on the calendar. One of the very few.
  • Chief Ten Beers  •  3 months ago
    All of these losers need to be voted out.
  • charles simmons  •  Columbia, South Carolina  •  3 months ago
    Walks like a cave in,talks like a cave in,sounds like a cave in, then it must be a......
  • bo  •  Washington, District of Columbia  •  3 months ago
    Good ideas get buried in senseless argument; bad ideas triumph through obstinence and fatigue.
    • Gabriel 3 months ago
      Yep - read up on the "Delphi Technique".
    • bo 3 months ago
      Boy, that's frightening stuff. So both Hilary and Barack were students of that. That explains a lot.
  • david  •  Santa Clara, California  •  3 months ago
    So now a temporary tax cut that did nothing is an entitlement that can't possibly expire, in an election year. Good politics is bad policy. They took away all the business incentives for investment so I will not be replacing my employees that retired this year. Stick that in your jobs package Big O. Unemployment is only going down because they only count the people still getting benefits as unemployed!!! What a joke.
  • Global Cooling  •  3 months ago
    Where were the outraged GOPers when Bush rang up $10 trillion in borrowed money for tax cuts, wars, medicare part D and a massive expansion of the federal govt (dept. of homeland security, NCLB, etc.)? They only use the "small government" battle cry when they aren't the ones holding the cookie jar.
  • Chilly Billy  •  3 months ago
    GOP = No Balls At All. So, please tell me again the difference between a 747 and a 757 crashing into the ground.
  • denise  •  3 months ago
    This tax cut is a gimmick that hurts Social Security...again. It really doesn't "stimulate" anything with an average $40/wk savings.
  • scott  •  Los Angeles, California  •  3 months ago
    Refreshing in the sense that there is not even a pretense of objectivity in this article.
  • Patrick K  •  3 months ago
    Our system is one of compromise , Not stall and screw things up as bad as congress tries to do most in congress arent knowlegeable about what type laws they are writing just get onboard your buddies deal wheter its proper and true and good for all . We should be throwing out the old laws that are in conflict with the new laws . CFR are so vast it would take 1 harvard lawyer professor 40,000 years to read and understand whats up
 
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