A bill limiting the tax cuts to the first $250,000 of household income fell short of the 60-vote threshold needed to limit debate, 53 to 36. A second measure raising the income threshold to $1 million also failed, 53 to 37.
The Saturday votes appeared to be part of the process towards reaching a deal. Democrats wanted to show where they stood – and only after they did that could they begin to accept the inevitable outcome, a temporary renewal of all the Bush tax cuts, rather than just those for the middle class.
“It became apparent the second time we met that actually there weren’t going to be any bipartisan negotiations to reach a decision until there had been a political catharsis on the Democratic side,” said Jon Kyl (R-Ariz.), who was tapped for the bipartisan working group. “We’ve been very congenial with each other, but it’s been very clear that we’re not going to be negotiating anything until all of this political process is over with.”
The votes were also aimed at registering Democratic concern about the direction of White House negotiations. Administration officials stepped up their advocacy late this week for some initiatives that Democrats view as crucial, including $150 billion worth of less-publicized tax cuts, hiring incentives and an extension of unemployment insurance. But unease remained about whether the White House was too willing to concede Republicans without getting enough in return.
So the question is what do the Dems do now? They need to follow this up with a tax cut bill of their own. They also need to go on the offensive and say "Look, the Republicans are holding 98% of America hostage to get tax cuts for the richest 2%." In other words, Dems have to be prepared to hurt Republican feelings here.
Put the Obama tax cut bill on the floor. Dare the Republicans to vote against it. Then hammer them. Use the bully pulpit, Mr. President.
[UPDATE] Looks like Obama is at least going to pick a fight.
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