Tax cuts have US Congress split

Image
Bloomberg Washington
Last Updated : Jan 21 2013 | 6:57 AM IST

Republican and Democratic leaders are getting an early taste of the political challenges they’ll face next year, as lawmakers in both parties resist the push to pass legislation to prevent taxes from increasing for most Americans next year.

The compromise measure hammered out between President Barack Obama and Republican congressional leaders passed the Senate yesterday, 81-19, and will come up in the House.

The core of the Senate opposition came from fiscally conservative Republicans, such as Tom Coburn of Oklahoma and Jim DeMint of South Carolina, and Democrats who oppose extending tax breaks for the wealthy, including Patrick Leahy of Vermont and Tom Harkin of Iowa. In the House, that same sort of mismatched group is complicating passage prospects.

The obstacles facing the legislation exposed internal tensions in both parties, highlighting the difficulties their leaders will face building coalitions in a new Congress in which Democrats control the Senate while Republicans lead the House. In the House, Republicans gained the majority in part because of new members swept into office in November’s elections on a wave of support from fiscally conservative Tea Party activists.

“Republicans will have to manage a Tea Party caucus that feels free to fight against leadership,” said Brian Darling, director of Senate relations at the Heritage Foundation, a Washington-based group that promotes limited government.

Among Democrats, who also lost six Senate seats in November’s elections, discontent with Obama has grown as the economic recovery from the worst recession since the Great Depression has proved slower than the administration forecast.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 17 2010 | 12:47 AM IST

Next Story