By Susan Ferrechio
Texas Insider Report: Washington D.C. The Obama administration is sending in high-ranking mediators in hopes of ending its stalemate with congressional Republicans over extending the Bush-era tax cuts.
Treasury Secretary Tim Geithner and Office of Management and Budget Director Jack Lew will meet with four lawmakers -- two each from the House and Senate Republicans and Democrats -- with the aim of striking a deal on how to extend tax cuts that are set to expire for all income levels on Dec. 31.
The negotiations were proposed in a morning meeting between President Obama and Republican and Democratic lawmakers to discuss the agenda of the lame-duck session.
The president did suggest that to unlock the tax disagreement that we have the secretary of the Treasury and the director of the Office of Management and Budget sit down with four of our members from each caucus on the Hill to begin discussions House Speaker-elect John Boehner R-Ohio said after the meeting.
The disagreement between the two parties over who should continue to get a tax cut has turned into a high-stakes game of chicken with neither side willing to budge. Most Democrats want the current tax cuts extended to individuals earning less than $200000 or couples making less than $250000. Republicans are insisting the cuts be extended to everyone saying it would help revive the fragile economy.
Senate Majority Leader Harry Reid D-Nev. said that if the new round of negotiations fails to produce an agreement he will introduce a bill that would extend tax cuts only to the lower-income taxpayers.
The number one goal that I have I think everyone in our caucus has and I know the president has is to protect the middle class Reid said.
Senate Democrats huddled for hours Tuesday debating how to advance the tax cuts given that several of their own party members are joining Republicans in their call to extend the cuts to everyone -- a move Obama says would drive up the federal deficit.
We are just continuing to have lengthy and interesting discussions said Sen. Byron Dorgan D-N.D. who supports extending the cuts only to individuals earning less than $200000 a year. There are disagreements at this point.
The tax issue is just part of an overall struggle within the Democratic caucus on how to move forward in the limited time members have left in the lame-duck session. In January Republicans will take control of the House and expand their numbers in the Senate.
While moderate Senate Democrats want to limit the sessions agenda to the tax cuts and other measures that aid the economy others see the last days of the session as the final opportunity to pass key bills on the partys wish list before January.
What I want to do is prioritize the agenda in terms of what needs to be done now versus what may also be accomplished by the first of the year said Sen. Ben Nelson D-Neb. who favors focusing on a more limited agenda. But he added Other people had other ideas.
