CNN: House Democrats defy Obama on tax cut bill

Put this into the "I will believe it when I see it" category (especially since there is no stock market reaction), but CNN reports House Democrats defy Obama on tax cut bill

Defying President Obama, House Democrats voted Thursday not to bring up the tax package that he negotiated with Republicans in its current form.

"This message today is very simple: That in the form that it was negotiated, it is not acceptable to the House Democratic caucus. It's as simple as that," said Democratic Congressman Chris Van Hollen.

"We will continue to try and work with the White House and our Republican colleagues to try and make sure we do something right for the economy and right for jobs, and a balanced package as we go forward," he said.

The vote comes a day after Vice President Biden made clear to House Democrats behind closed doors that the deal would unravel if any changes were made.

"Wow did the [White House] mishandle this," a senior House Democratic Source told CNN. "Breathtaking. Members have major substantive concerns and they should have gently guided people to the finish line."

Rep. Peter DeFazio of Oregon said: "They said take it or leave it. We left it."

Had added the caucus resolution is technically not binding, but believes House Speaker Nancy Pelosi "will follow the wishes of her caucus."

I believe Pelosi cannot think on her own and will do what she is told to do by the President so as to "not damage the party".

Nonetheless this is a clear slap in the face to President Obama, and a much deserved one at that. He should have made sure the caucuses would approve his compromise up front.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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