Tax cut showdown moves to the House next week

Eric Cantor and John Boehner, in a jam. Republican House leaders John Boehner and Eric Cantor are jammed up now on taxes, and they know it. Senate Majority Leader Harry Reid's big victory in passing an extension of just the middle-class tax cuts, finally separating them from the tax cuts for the wealthy, took a hostage away from Republicans. Reid and the Senate proved that the only viable tax cut bill out there now is the Democrats', and if it doesn't pass because of Republican stonewalling on behalf of millionaires and billionaires, it becomes an even more powerful campaign advantage for Democrats.

House Minority Leader Nancy Pelosi obviously knows that, and immediately began putting pressure on Boehner to hold a vote.

The United States Senate voted to give 100 percent of Americans'everyone in this country'a tax cut. We all agree that's a good idea. The only thing standing in the way of a middle income tax cut is the House Republicans,' she told reporters. 'We call upon our Republican colleagues to bring this bill to the floor today.'

What Pelosi did particularly well there is to make very clear the point that everybody does continue to get this tax break, even people making more than $250,000, because they still get the break on that first $250K. So everybody's tax cut is being jeopardized by Republican obstruction.

Grudgingly, because it's the only thing they can do, Cantor and Boehner agreed to hold a vote on the Senate bill, what they're call the "president's tax hike," next week, when the Republican bill to extend all of the tax cuts will be considered. Their argument is that small businesses will be economically crippled, which is utter bullshit, of course, but it's all they got.

Well, they also argue that, as Cantor said, "The Senate bill is unconstitutional, because it contains a revenue measure in it. So we're unable to get to conference with the Senate." Yes, it is a constitutional issue. But not one that's held up the House on bills that they actually wanted to pass, so that argument is specious, as David Waldman and I discussed it yesterday on Daily Kos Radio. Listen here:

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It's not clear as of yet whether Republicans are going to allow the Democrats to offer the Senate bill as a stand-alone or as an amendment to their bill, which would extend all the tax cuts. Either way, Republicans will defeat it, proving their loyalty to millionaires and billionaires and Grover Norquist.