Politics
Obama slams GOP: Blames Republicans for upcoming tax increase
The standoff was sowing confusion for businesses, running out of days to adapt to any new payroll tax regimen. Even the Senate’s proposed two-month extension was creating headaches because it contained a two-tiered system geared to ensuring that higher-income earners paid a higher rate on some of their wages, according to a trade group.
“There’s not time enough to do that in an orderly fashion,” said Pete A. Isberg, president of the National Payroll Reporting Consortium trade group. “We’re two weeks away from 2012.” He wrote a letter to congressional leaders this week warning that the Senate bill “could create substantial problems, confusion and costs.”
Democrats pounced on Republicans for rejecting the Senate bill, emboldened by polls finding Obama’s approval rising and that of the congressional Republicans fading. They noted that several lawmakers whom Boehner appointed to negotiate a compromise had recently criticized an extension of payroll tax cuts.
For his part, Boehner sent a letter to the president, noting he had requested a yearlong extension of the tax cut and the House had approved one. “There are still 11 days before the end of the year, and with so many Americans struggling, there is no reason they should be wasted,” he wrote, asking Obama to call the Senate back from its year-end vacation.
In his appearance before White House reporters, Obama said Republicans would be to blame for the consequences of a standoff. “Right now, the recovery is fragile, but it is moving in the right direction,” he said. “Our failure to do this could have effects not just on families but on the economy as a whole.” Obama had requested the extension of the payroll tax cut and unemployment benefits in the fall as part of his jobs program.
As recently as Friday, it appeared a compromise was in sight on the legislation.
