A Christmas Game of Chicken
by digby
So the Republicans in the House passed the poison pill appropriations bill and now we’re looking at a possible government shutdown:
Despite loud warnings from Senate Democrats and a veto threat from President Obama because of poison pills within the text, House Republicans Tuesday passed legislation to renew a 2 percent payroll tax holiday and extended unemployment benefits of one more year.
The bill passed 234 – 193, with 10 Democrats joining with the Republicans and 14 Republicans pitching in with the Dems.
In a private conversation Monday, Senate Majority Leader Harry Reid again warned House Speaker John Boehner that his bill remains dead on arrival in the Senate. In particular, Democrats and the White House oppose a number of GOP-backed provisions: a measure forcing the Obama administration to expedite its decision about whether to green light construction the Keystone XL pipeline; out-year spending caps that could further reduce funding to key federal programs; and other restrictions including one that would allow states to drug test unemployment applicants.
The GOP bill also includes a steep increase in Medicare costs for middle class and upper class beneficiaries to help offset the cost of the payroll holiday. Per the Associated Press, it would “rais[e] premiums for ‘high-income’ Medicare beneficiaries, now defined as those making $85,000 and above for individuals, or $170,000 for families.”
Some would pay as much as several hundred dollars a month additional for Medicare outpatient and prescription coverage. Millions who don’t consider themselves wealthy would also end up paying more.
Harry Reid warned them that they’d be shutting down the government if they passed this odious thing, the President said he’ll veto it and the money runs out at the end of the week. Hello shutdown.
Of course, you never know:
Democrats continue to push Republicans to accept a small income surtax on income over $1 million to offset the cost of renewing the payroll holiday, but with little time until the government shuts down and the current tax cut expires, they may be willing to cut a deal.
Said Sen. Dick Durbin (D-IL), the number two Democrat in the Senate, “We’re open to ideas.”
Stay tuned. it looks like we’re in for a little Christmas game of chicken.
Update: By the way, I’m told that the Republicans who voted against the bill did so because it didn’t go far enough. I’m not feeling the bipartisanship.