In an astonishing development, the Democratic caucus in the U.S. House voted this afternoon to reject the compromise deal negotiated between President Obama and the Republican leadership to extend both federal unemployment benefits and the Bush tax cuts for the wealthiest Americans.
The House Democratic Caucus voted to oppose President Barack Obama’s tax plan, throwing into flux weeks of negotiations on an issue that has turned many congressional Democrats against the White House.
Oregon Rep. Peter DeFazio offered a resolution in a closed Democratic caucus meeting Thursday morning that said Democrats would oppose the bill in its current form. It is a nonbinding measure but illustrates Democratic displeasure with the bill that extends upper-income tax cuts and offers what they consider a generous deal to Republicans on the estate tax.
House Speaker Nancy Pelosi said that she will stand by her caucus and will not bring the bill to the floor for a vote until there are changes made. If the bill were to come up for a vote it would likely pass with a majority of Republicans and a minority of Democrats voting for it.
It could be back to square one for the White House, which will delay the restart of federal unemployment benefits as well as delay work on other legislative priorities.