Danger: Cliff Ahead!
U.S. HOUSE DOESN’T HAVE THE VOTES FOR “PLAN B”
The GOP-controlled U.S. House of Representatives adjourned for Christmas break without voting on a massive tax hike being pushed by its “Republican” leadership.
The tax hike – dubbed “Plan B” – would have sucked $1 trillion out of the private sector over the coming decade, including payroll tax hikes, estate tax hikes and income tax hikes on individuals making more than $1 million a year. U.S. President Barack Obama has proposed a $1.6 trillion tax hike plan that includes all of the above – except his income tax hikes would affect anyone making more than $400,000 a year.
Obama also wants unilateral authority to raise the U.S. debt limit – which is scheduled to hit its $16.4 trillion ceiling early next year.
Both plans are terrible – which is why fiscal conservatives in the U.S. House are standing against them even as the so-called “fiscal cliff” approaches. Of course it really doesn’t matter what they do, because as we’ve noted previously Obama wants to go over the cliff.
In dismissing lawmakers for the break, U.S. Speaker John Boehner acknowledged that his tax hike “did not have sufficient support from our members to pass.” That’s quite a reversal from earlier in the day, when U.S. Majority Leader Eric Cantor told reporters “we’re going to have the votes.”
Boehner failed even though anti-tax advocate Grover Norquist signaled that a vote in favor of “Plan B” would not violate his organizations much-ballyhooed “Taxpayer Protection Pledge.”
“Plan B” is nothing but the latest iteration of the new “Republican” modus operandi … caving to the Democrats on bread-and-butter fiscal issues as they try to silence fiscal conservatives within their own ranks.
“Instead of focusing on cutting spending, Speaker Boehner and the Republican Establishment spent the last few weeks purging conservatives from prominent committees,” wrote Matt Kibbe of Freedomworks shortly before the aborted vote. ”We didn’t elect a majority Republican House so they could roll over every time the going gets tough. We elected them to STOP Obama’s out-of-control power grabs.”
That’s true …
UPDATE: Every member of South Carolina’s GOP delegation (Jeff Duncan, Trey Gowdy, Mick Mulvaney, Tim Scott and Joe Wilson) stood against this measure. Props to them.