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Spokane, Washington  Est. May 19, 1883

GOP demands deal on tax cuts

Party pledges to block other legislation until vote

Lisa Mascaro Tribune Washington bureau

WASHINGTON – A day after agreeing to work with President Barack Obama to end a stalemate over expiring tax cuts, congressional Republicans flexed their newfound political muscle Wednesday, declaring that they would block consideration of any other legislation until a deal is reached on tax cuts and temporary government funding.

The move put Republicans in a much stronger position to win across-the-board extensions of the Bush-era tax cuts by threatening to deny votes on any other Democratic initiative during the lame-duck congressional session.

The White House brushed off the Republican maneuver, but it puts the administration in a bind, essentially making hostages of several high-profile Obama priorities, including unemployment benefits, a new arms-reduction treaty with Russia, the youth immigration law known as the DREAM Act and the repeal of the controversial ban on gays in the military.

Without a quick deal that could require Obama to drop his opposition to continued tax cuts for the wealthiest taxpayers, those earning beyond $250,000 annually, Democrats likely would end the lame-duck session without signature victories.

The maneuvering took place as top negotiators met behind closed doors to resolve the stalemate. Without action, the tax cuts approved during the George W. Bush administration would expire Dec. 31, leading to an estimated 3 percent tax increase for most American taxpayers.

Following a meeting at the White House on Tuesday, Obama and congressional leaders agreed to form a six-member panel to negotiate the tax cut issue. Treasury Secretary Timothy Geithner, Office of Management and Budget Director Jacob Lew and four congressional representatives sequestered themselves for a series of closed-door meetings on Capitol Hill that are likely to continue for days.

Sources said that all sides during the morning meeting clung to starting positions and that every participant had an opportunity to lay out their priorities.

Republicans want the tax cuts for all households extended permanently, despite the additional $700 billion cost of tax breaks for the wealthy. They also want to avoid separate treatment of tax breaks for those earning less than $250,000 from wealthier households.

Democrats favor tax cut extensions for families earning less than $250,000 but want to end or limit breaks for wealthier earners.