President Obama is facing an civil war. The President and a some “Blue Dog Democrats” have compromised with GOP to extend the tax cuts while the Republicans extend for 13 additional months. From The Hill:
House of Representative speaker Nancy Pelosi has shelved the President compromise. Senate Majority Leader Harry Reid also opposed the compromise as well although he would bring it to a vote.
The House Democratic Caucus on Thursday rejected the tax deal negotiated between the White House and Senate Republicans.
The non-binding vote of the caucus held during a closed-door meeting puts tremendous pressure on House leaders to win changes to a proposal the White House has presented as a “take it or leave it” package.
House Speaker Nancy Pelosi (D-Calif.) issued a brief statement after the vote indicating that lower-chamber Democrats will fight to alter the bill.”We will continue discussions with the President and our Democratic and Republican colleagues in the days ahead to improve the proposal before it comes to the House floor for a vote,” Pelosi said.
“Democratic priorities remain clear: to provide a tax cut for working families, to create jobs and economic growth, to assist millions of our fellow Americans who have lost their jobs through no fault of their own, and to do this in a fiscally sound way.”
White House press secretary Robert Gibbs said the president is confident Congress will approve the tax package despite its rejection by House Democrats. “At the end of the day” the bill will pass both houses, Gibbs said at his daily press briefing.
Gibbs challenged Democrats to come up with a better compromise than the one Obama reached with Republicans in an effort to break a “legislative stalemate” that could have disastrous consequences for the economy.
“If everybody took out what they didn’t like, we would have nothing,” Gibbs said. “And we know the consequences of doing nothing.”