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Jamie Dupree's Washington Insider

Posted: 9:29 p.m. Thursday, Nov. 18, 2010

After Thanksgiving 

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By Jamie Dupree

If you thought that both parties would come together after the November elections and solve a host of problems in Congress, then you need to wait until after Turkey Day.

While both sides talk about bipartisan cooperation and more, the truth is that neither party wants to yield an inch on a variety of key issues, no matter what the voters just did two and a half weeks ago.

While the Congress returned to work this week, there were no real advances on what to do about the Bush tax cuts, federal estate taxes, the Alternative Minimum Tax, the so-called tax extenders, extended jobless benefits and much more.

And even as Democrats talked about holding votes in coming weeks on the Bush tax cuts, there was no talk of deal-making.

"I think the main thing we have learned is that we are united in recognizing that we have to protect the middle class," said Sen. Harry Reid (D-NV), who made clear that he will try to force a Senate vote on a plan to permanently extend the Bush tax cuts for the middle class, but not top earners.

"We have to be very, very careful extending things indefinitely," Reid said.

Over in the House, the plan right now is to hold a vote on a bill that only makes the tax cuts permanent for those earning less than $250,000/year per family, or $200,000 for an individual, as Democrats dare the GOP to oppose that plan in order to protect lower tax rates for the rich.

But just as that kind of talk didn't scare Republicans before the elections, it certainly doesn't seem to be causing GOP lawmakers to get jittery at this point, either.

It may ultimately mean a lot of talk about brinksmanship, but a two year extension of all the tax rates before Christmas.

Still, one cannot rule out the chance that nothing is done, and tax rates simply go up for all income levels.

Meanwhile, Democratic plans to roll all 12 budget bills into one 'omnibus' bill seem to have gone down the drain, as Senate GOP Leader Mitch McConnell vowed on Thursday to oppose any such plan.

"If this election showed us anything, it's that Americans don't want Congress passing massive trillion-dollar bills that have been thrown together behind closed doors," said McConnell on the Senate floor.

That means Congress will probably have to approve another short-term budget after Thanksgiving to keep the government running.  The current plan runs out on December 3.

It means the budget may get kicked into the new Congress as well.

Finally, there is nothing to report on changes to the estate tax, Alternative Minimum Tax, or the tax extenders.

Democrats still have big majorities in the Congress - but they don't have an agreement amongst themselves on the best possible course on a host of issues.

We'll see if anything changes after Thanksgiving when Congressional leaders meet with the President on November 30.

Christmas Eve, here comes the Lame Duck.

 
 
 

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