Iowa Democrats support GOP payroll tax extension in House

Only ten Democrats in the U.S. House supported a bill approved last night to extend the payroll tax cut and some unemployment benefits. All three Iowa Democrats crossed party lines to vote for this legislation, which has drawn a rare veto threat from the White House.

UPDATE: Scroll down for Representative Dave Loebsack’s statement on this vote.

SECOND UPDATE: I’ve added a statement from Representative Steve King.

As Democrats have been eager to remind the public, the payroll tax cut will expire without Congressional action by December 31. In order to get H.R. 3630 through the House, Speaker John Boehner and his leadership team threw lots of bones to ambivalent conservatives. The White House quickly issued a veto threat last night. Here are some of H.R. 3630’s offending provisions:

The administration’s veto threat referenced provisions that Republicans use to pay for the bill, including the repeal of funding for the 2010 healthcare law and measures that, the White House said, broke a spending agreement hatched this summer during the debt-limit deal. Obama has previously threatened to reject the GOP bill over the inclusion of a measure forcing the administration to expedite a decision on the Keystone XL oil sands pipeline. […]

Highlighting the confrontation with Obama over the Keystone pipeline, Boehner has been able to win over conservatives who were initially opposed to the president’s push to extend the payroll tax holiday and unemployment benefits. In addition to the Keystone provision, Republicans included measures delaying environmental regulations, limiting the duration of jobless benefits and restricting benefits for illegal immigrants, among other sweeteners. They proposed to offset the cost of the bill in part by extending a federal-worker pay freeze and reducing certain Medicare benefits for the wealthy.

The roll call shows that only 14 Republicans rejected the payroll tax extension bill. I expected to see Steve King (IA-05) in the “nay” group, because he often defies leadership on spending bills and criticized the payroll tax cut a few days ago. However, King voted with the majority of his caucus for this bill, just like Boehner’s “buddy” Tom Latham (IA-04) did. I have not seen a press release from King yet about this vote. Latham’s office sent out the following statement:

HOUSE PASSES PRO-JOBS LEGISLATION THAT EXTENDS TAX RELIEF FOR WORKING FAMILIES

 MIDDLE CLASS AMERICANS WILL SEE TAX INCREASE IF SENATE DOESN’T ACT WITHIN THE NEXT 18 DAYS

WASHINGTON, DC – The U.S. House of Representatives passed fiscally responsible legislation Tuesday evening that will spur job growth and extend tax relief for hard working middle-class Americans.

The Middle Class Tax Relief and Job Creation Act of 2011, HR 3630, contains provisions that extend the current payroll tax holiday, reform the unemployment insurance program, prevent cuts to doctors who serve Medicare patients in Iowa and the nation and expand job-creating provisions that encourage employers to hire new workers.  Continuing the practice of fiscal responsibility established by the Republican-led House since taking control of the chamber this year, the legislation is fully paid for through common-sense spending cuts and reforms that protect the Social Security trust fund and crack down on waste, fraud and abuse.

The U.S. House of Representatives approved the legislation by a vote of 234 to 193.

“This legislation is proof that the majority leadership in the U.S. House of Representatives is listening to the demands and needs of the American people, too many of whom continue to wake up every day to grim economic news and a stagnant jobs market,” said Iowa Congressman Tom Latham, who voted for the bill. “This legislation prevents a tax hike from taking effect in January on hard-working Iowa families and protects the programs that American seniors rely on most for a secure retirement. It takes a responsible approach that provides help to those who need it right now, but it doesn’t leave our children and grandchildren stuck with the bill.  These are the critical steps we need to take to get our economy back on track and moving forward.”

The legislation contains a multitude of bipartisan ideas, many of which have previously received backing from the White House.  Congressman Latham urged the U.S. Senate to approve the legislation quickly to combat the economic uncertainty gripping American families and Iowans throughout the state.

“With passage of this legislation, the House has paved the way for tax relief and greater economic certainty for Iowa families and seniors,” Congressman Latham said. “It’s time for the Senate to follow that example of recognizing and listening to the needs of the people we were elected to represent and stop blocking the dozens of common-sense solutions passed by the House this year to create an environment of job creation and economic growth.   President Obama is absolutely correct when he says the American people can’t wait for jobs.  This legislation is an important and immediate step toward a real economic recovery.”

Senate Majority Leader Harry Reid has already described H.R. 3630 as “a pointless partisan exercise” that is “dead on arrival.” In fact, Reid claimed that he wanted to call a Senate vote on the bill immediately last night, but Senate Minority Leader Mitch McConnell asked for more time.

Getting back to the House vote, when I see a roll call showing that just 10 Democrats joined the GOP majority, I assume that we’re dealing with the bluest of Blue Dogs. So I was surprised to see not only Leonard Boswell (IA-03) but also Dave Loebsack (IA-02) and Bruce Braley (IA-01) among the “ayes” on H.R. 3630. According to Russell Berman and Molly K. Hooper, “The Democrats who voted yes all waited until the bill was assured of passage before casting their votes.” In other words, they probably would have voted no if Republicans had been unable to cobble together 218 votes for this bill. Not exactly profiles in courage.

I haven’t seen statements from Boswell or Loebsack yet, but Braley’s office sent out this release:

Braley Joins Bipartisan Majority to Support Middle Class Tax Cut

Every working Iowan will benefit from payroll tax cut extension

Washington, DC – Rep. Bruce Braley (IA-01) today released the following statement after crossing party lines to support a Republican bill that would extend a payroll tax cut for the middle class for an additional year:

“Unless Congress acts, the average Iowa family could see their taxes go up by $1,000 on January 1st,” Braley said.  “Extending the middle class tax cut and keeping money in the pockets of hard-working families is a sure-fire way to fuel economic growth.

“People in this country are desperate for leadership and they don’t care about labels, they care about results.  To me, extending tax cuts for middle class families is more important than Washington politics.  This bill isn’t about Republicans or Democrats- it’s about strengthening our economy and stopping a tax increase from hurting middle class families in the middle of a recession.

“I’m not crazy about many of the extra provisions contained in this bill.  In fact, I have serious reservations about the adjustments it makes to public health funding, unemployment insurance, and Medicare reimbursements.  But Iowa’s middle class families can’t afford inaction from Congress on extending these tax cuts.”

The legislation would extend for an additional year a 2 percent Social Security payroll tax holiday that was first passed at the end of 2010.   An average American family making $50,000 per year would save $1,000 with the extension of the tax cut.

The legislation also extends unemployment insurance for out-of-work Americans for 13 months, through January 31st, 2013.

I am seeking more the details about the changes in Medicare reimbursements Braley mentioned here. Julian Pecquet reported for The Hill that the payroll tax extension bill “includes a two-year ‘fix’ to the formula for Medicare payments to doctors.” In the past Iowa Democrats have supported similar “doc fixes.”

The Democratic Congressional Campaign Committee blasted Latham in a December 13 press release. Excerpt:

This evening, Representative Tom Latham (IA-04) voted to force a $1,000 payroll tax hike on 1.7 million middle income Iowa families and raise Medicare premiums for seniors instead of ending tax breaks for billionaires. While voting for higher Medicare premiums for seniors in retirement, Latham even voted against cutting his own Congressional retirement pension.

Latham had previously voted three times to let these payroll taxes go up by $1,000 while letting House Republicans leave Washington for their holiday vacation.

“Representative Tom Latham is forcing a $1,000 middle income tax increase on 1.7 million Iowa families and higher Medicare premiums for seniors in order to protect tax breaks for billionaires,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “Latham even opposed savings from his own Congressional pension while voting to raise taxes on middle income Iowa families and raise Medicare premiums for seniors. Tom Latham’s priorities shined through today – higher taxes for the middle class and health care costs for seniors while the ultra wealthy get more tax breaks.”

This afternoon, the Associated Press reported that Latham’s vote would mean “Millions who don’t consider themselves wealthy would also end up paying more” in Medicare premiums.

Background

Latham voted to raise Medicare premiums for seniors. The Associated Press reported that, “Raising taxes on millionaires may be a non-starter for Republicans, but they seem to have no problem hiking Medicare premiums for retirees making a lot less. The House is expected to vote Tuesday on a year-end economic package that includes a provision raising premiums for “high-income” Medicare beneficiaries, now defined as those making $85,000 and above for individuals, or $170,000 for families. Some would pay as much as several hundred dollars a month additional for Medicare outpatient and prescription coverage. Millions who don’t consider themselves wealthy would also end up paying more.” [HR 3630, Vote #923, 12/13/11; Associated Press, 12/13/11]

Latham voted to protect his own congressional pension. Representative Tom Latham voted against a measure that cuts back on pensions for Members of Congress. The measure would block pending pension increases and increase Member of Congress’s share of their own pension by 1.5%. [HR 3630, Vote #922, 12/13/11]

Vote number 923 was on final passage of this bill. Whoever drafted this release for the DCCC apparently wasn’t counting on Braley, Loebsack and Boswell (Latham’s 2012 opponent in the new IA-03) to vote yes as well. Awkward!

Vote number 922 was on the Democratic motion to recommit H.R. 3630 with instructions. The three Iowa Democrats did support that motion, which would have cut back on Congressional pensions. But I’m not convinced House Democrats are committed to those pension changes. It’s easy to throw a provision like that into a motion to recommit, which everyone knew Republicans would unanimously oppose.

Share any relevant thoughts in this thread.

UPDATE: Loebsack’s office released the following statement on December 14:

Loebsack, Five Others Stand Up for Compromise Over Politics on Tax Cuts for Working Families

Washington, D.C. – Congressman Dave Loebsack released the following statement on the status of efforts to extend the payroll tax cuts, Medicare reimbursements and unemployment insurance.  If this tax cut is allowed to expire, a typical American family making $50,000 a year would see their taxes go up by $1,000.

“Right now, my number one priority is to ensure working families across Iowa do not see their taxes raised by $1,000 come January 1.  That is why I was one of only six members in the entire House of Representatives who was willing to put aside these political games and buck both parties’ leadership by supporting both my preferred plan and being willing to compromise on a second plan.  I do not support many of the provisions in the House passed bill and prefer the proposal that would provide a larger payroll tax cut.  However, with the paychecks of hardworking Iowans on the line, it is time to move beyond the politics of government shutdowns, holding the economy hostage over debt ceiling debacles and Super Committee failures.  I will continue to work to find a compromise that will be signed into law, provides middle class tax cuts and fixes the flaws in the House passed bill.”

Last night, Loebsack was one of six members in the House of Representatives who voted for both the Democratic alternative to extend the payroll tax cuts, Medicare reimbursements and unemployment insurance, as well as the final bill that passed.

UPDATE: Representative Steve King released the following statement on December 15:

Washington, DC- Today Congressman Steve King (R-IA) released the following statement after President Obama and Senate Majority Leader Harry Reid took steps to derail bi-partisan legislation passed yesterday by the House to extend a cut in the payroll tax for another year. The cost of the extension was fully offset, and the bill was supported by every member of Iowa’s House Delegation. However, the President and Senator Reid have suggested that because the payroll tax holiday is not paid for by a new tax on small business owners and job creators, they will plan to hold up the rest of Congress’ year end, must-pass legislation until their demands for new tax increases are met. The legislation passed by the House also included provisions to reauthorize the national flood insurance program, extend and reform unemployment benefits, prevent physicians from seeing a 27% cut in Medicare reimbursements, and an extension of several tax deductions and credits for businesses.

“For months, the President and Senator Reid have called for an extension of the payroll tax holiday that was passed last year,” he said. “Yesterday, I joined the rest of the Iowa delegation in supporting commonsense legislation to do just that. The bill was fully paid for and included a number of other important provisions related to reforming unemployment benefits, updating the flood insurance program, giving businesses certainty in the tax code and incentives to grow, and ensuring seniors’ access to physicians through Medicare. The President has said that the extension of this payroll tax holiday topped his list of year end priorities. We now know that his real priority is increasing the tax burden on the small business owners and job creators who are seeking to put Americans back to work.”

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