GOP Rejects Obama Deal of Replacing Special Interest Tax Breaks With a Payroll Tax Cut

This makes zero sense whatsoever.

Mr. Obama suggested in Thursday’s meeting that leaders end tax breaks for ethanol producers, oil and gas companies and corporate jet owners, and offset those tax increases with an extension of the payroll tax credit for employees, a Democratic official familiar with the meeting said, but Republicans said they would not support it.

Replacing special interest tax breaks with a tax holiday for everybody, and Republicans turn it down? That’s just baffling. Are they TRYING to live up to their stereotypes as slaves to the interests of the rich?

h/t Nate Silver

FILED UNDER: Congress, Deficit and Debt, Politicians, Quick Takes, Taxes, US Politics
Alex Knapp
About Alex Knapp
Alex Knapp is Associate Editor at Forbes for science and games. He was a longtime blogger elsewhere before joining the OTB team in June 2005 and contributed some 700 posts through January 2013. Follow him on Twitter @TheAlexKnapp.

Comments

  1. Are they TRYING to live up to their stereotypes as slaves to the interests of the rich?

    I honestly think they’re throwing things at the wall at this point and seeing what sticks. “OK, that worked, let’s see if we can push for THIS!”

  2. Gustopher says:

    If Obama suggests it, they are opposed. They aren’t interesting in governing, they are only interested in tearing down Obama.

  3. LED Tape says:

    Why would the republicans turn that down?

  4. george says:

    This makes zero sense – fiscal conservatives should be jumping at this, and trying to nail it down before Obama changes his mind. The only interpretation I can think of is that the GOP is against anything Obama offers, whether its good for the economy or not.

  5. Vast Variety says:

    I’m completely speechless over that.

  6. Ben says:

    the GOP is against anything Obama offers, whether its good for the economy or not.

    DING DING DING

  7. APL says:

    I agree with the ending Tax Loopholes. But lets’ make the payroll tax cuts
    permanent, or go to a flat tax, keep the personal, mortgage interest, and contributions
    deductions and eliminate all other deductions.
    We also need to close a number of govt agencies that duplicate works.

  8. Moosebreath says:

    “Are they TRYING to live up to their stereotypes as slaves to the interests of the rich?”

    It’s not a stereotype — it’s the result of their incentives. After decades of success in drinking their own Kool-Aid on the topic of trickle down economics and the unworthiness of anyone who does not pay income tax, anything that helps the poor at the expense of the rich is forbidden to the Republicans. The need for campaign donations doesn’t hurt, either.

  9. hey norm says:

    I thought the so-called republicans said that revenue increases had to offset with other revenue cuts??? Isn’t that what this is?
    I think these clowns – and I apologize for insulting clowns – are playing right into Obama’s hands. It’s pretty easy to portray these numbskulls as fiscal frauds after the last couple weeks.

  10. lunaticllama says:

    It’s not a stereotype. Republicans have been trying to dedicate increasing amounts of government revenue to corporations for decades. This is what they do. The false stereotype is not of Republican corporatism, but, rather, that Republicans care about things like the deficit or making the tax code work better. All their actions suggest that those “concerns” are just rhetoric. The actual policies they actually vote for inevitably funnel government money towards corporations.

  11. mantis says:

    the GOP is against anything Obama offers, whether its good for the economy or not.

    Correction: The GOP will not do anything that helps the economy in any way, as they want economic calamity, so they can blame it on Obama, even when they themselves cause it, as they are doing now.

    If Obama proposed we not raise the ceiling and default on our debts, the Republicans would be on board in a heartbeat.

  12. MarkedMan says:

    Really? You can’t imagine why Republicans put government welfare for corporate lobbyists corporations over the average working stiff? Are any of the commenters above really shocked or is it just sarcasm? Just curious…

  13. Didn’t the GOP propose a payroll tax holiday in 2008 and 2009?

  14. Moosebreath says:

    GOP leader also opposes actually reducing amount spent on Medicare prescription drugs. Because the our national debt is important enough to crash the economy over, but not to reduce prescription drug manufacturers profits over.

  15. EddieInCA says:

    @Timothy Watson:

    Didn’t the GOP propose a payroll tax holiday in 2008 and 2009?

    Yes. They also supported the following, which they are now against:

    1. Cap and Trade.
    2. The Science on Global Warming
    3. The Dream Act
    4. Single Payer Health
    5. Guest Worker Program
    6. Presidential Signing Statements
    7. Deficit Reduction