President Obama told Republican House leaders Tuesday he plans to stand firm on the part of his $825 billion economic recovery plan that calls for tax rebates for nearly all working Americans — including those who make too little to owe income taxes.
According to two Republican aides familiar with Obama’s Capitol Hill meeting, Rep. Dave Camp, R-Michigan, the ranking member on the Ways and Means committee, asked Obama if there was room for negotiation on the structure of the biggest tax cut in the bill.
“Feel free to whack me over the head because I probably will not compromise on that part,” the president replied, according to one of the aides, who requested anonymity because the member of Congress relaying information to the aide from inside the meeting wished to remain anonymous.
Obama supports the tax rebates for those who don’t pay income taxes because they do pay payroll taxes for Social Security and Medicare.
“The president said again that people that pay payroll tax are taxpayers,” White House spokesman Robert Gibbs said later. ” … And he just mentioned that the notion that refundability of tax credits for those that don’t make a lot of money was a principle that not only he holds, but one that Ronald Reagan held with the Earned Income Tax Credit in the ’80s.”
Obama came to the Capitol for meetings with GOP senators and representatives hoping to bridge Washington’s gaping partisan divide and find common ground in the face of a slumping economy.
While the unusual personal interaction between a president of one party and rank-and-file members of the other was warmly received on both sides of the aisle, the meetings ended with little promise of serious compromise or change on the core issue of how best to spark new economic growth.
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The president first met with House Republicans and then with the Senate GOP caucus.
“We had a wonderful exchange of ideas, and I continue to be optimistic about our ability to get this recovery package done to put people back to work,” Obama said after leaving the meeting with GOP House members.
“There are some legitimate philosophical differences” between Democrats and Republicans on how to stimulate the economy, Obama noted, “and I respect that.”
“I don’t expect 100 percent agreement,” he said. “But I hope we can put politics aside.”
House Minority Leader John Boehner, R-Ohio, said he believes some members enjoyed the conversation.
“Clearly, there are some differences, [but] I look forward to [working with Obama] to improve this package in the coming days so that it is a package that will work for American families, small businesses and our overall economy.”
Obama’s plan — the American Recovery and Reinvestment Act — has been placed on the congressional fast-track. Democratic leaders have said they aim to get the package to Obama’s desk for enactment by Presidents Day, which falls on February 16.
Gibbs said the meetings Tuesday did not “start at zero.”
“I don’t think today was the beginning or the end, but just part of that process,” he said. “I do think there is a genuine sense of — of cooperation that was involved in the meetings. I think we will have Republican support for this bill. I think you’ll have some when the House passes this bill, hopefully on Wednesday.”
The Republican aides, however, said the vast majority of House Republicans are expected to oppose the package Wednesday but are optimistic they will secure some of the changes they want after the vote — either through changes the Senate makes or in conference committee after the Senate votes on the stimulus.
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