An XL-Sized Tax-Increasing Problem for Democrats

December 12, 2011

House Democrats Caving to Radical Activists to Oppose Tax Cuts and Job-Creating Keystone XL Project

President Obama and Nancy Pelosi have announced their opposition to a deal that would extend the payroll tax cut while also paving the way for thousands of new jobs from the Keystone XL pipeline.
Sadly, House Democrats are once again preparing to stand with their party bosses as Democrats seek to placate their radical interest groups while sabotaging new job creation.
While Democrats continue to play political games, the economic consequences of not authorizing the Keystone XL pipeline are all too real—holding up as many as 130,000 jobs.

BACKGROUND

President Obama and Nancy Pelosi have announced their opposition to a deal that would extend the payroll tax cut while also paving the way for thousands of new jobs from the Keystone XL pipeline:

OBAMA “VOWED WEDNESDAY TO VETO ANY MEASURE THAT PACKAGES APPROVAL OF KEYSTONE XL OIL PIPELINE TO HIS PAYROLL TAX CUT EXTENSION”: (Richard Wolf, “Obama Warns Republicans on Keystone Project,” USA Today, 12/7/2011)

DEMOCRAT LEADER NANCY PELOSI: ” ‘The president has said he will veto a bill that has the Keystone pipeline in it,’ House Minority Leader Nancy Pelosi said Thursday. ‘That doesn’t make a decision as to whether you’re for it or against it, it has no place on this bill. Let’s get serious.'” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

SEN. MAJORITY LEADER HARRY REID: COMPROMISE PACKAGE IS “WASTING TIME”: “If the House sends us their bill with Keystone in it, they are just wasting valuable time because it will not pass the Senate.” (Russell Berman, “House GOP Releases Payroll Tax Package Under Obama Veto Threat,” The Hill, 12/9/2011)

POLITICO: “WHITE HOUSE AND CONGRESSIONAL DEMOCRATIC LEADERS ARE OF ONE MIND IN OPPOSING” COMPROMISE KEYSTONE DEAL: (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

Sadly, House Democrats are once again preparing to stand with their party bosses as Democrats seek to placate their radical interest groups while sabotaging new job creation:

DELUSIONAL? DCCC CHAIR REP. STEVE ISRAEL ACCUSES GOP OF BEING IN CHAOS FOR SUPPORTING COMPROMISE DEAL: “Keystone Gops: now House Repubs will only support middle class tax cut if they also get keystone pipeline. They are in chaos” (Tweet from Rep. Steve Israel, 12/9/2011)

STRAIGHT FROM THE DONKEY’S MOUTH: JOB CREATION IS “PORK”? “Representative Steve Israel, leading Democrats’ campaign to win back control of the U.S. House, assailed Republicans’ position on extending the payroll tax break, saying it will backfire politically and help Democrats. … ‘Only the House Republicans would decide to load a middle- class tax cut with pork,’ Israel said in an interview for Bloomberg Television’s ‘Political Capital with Al Hunt’ airing this weekend. Democrats need to pick up 25 seats in order to win back control of the chamber.” (Heidi Przybyla, “Israel Says Republican Payroll Tax Position Will Help Democrats,” Bloomberg, 12/9/2011)

THIS IS WHAT “CHAOS” LOOKS LIKE:

REP. JOHN DINGELL (D-MI): “Rep. John Dingell (D-Mich.) supports both the payroll tax cut and the pipeline. But combining them together? “Let’s see what comes,” he said, “I don’t know. We’ll see. Sometimes it’s good to do. Sometimes it’s not. I’ve done it both ways.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

REP. HEATH SHULER (D-NC): “Rep. Heath Shuler (D-N.C.) backs the pipeline project but not as part of the payroll plan. ‘I’m for it. Won’t be for it jumbled together,’ Shuler said.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

CBC CHAIRMAN REP. EMMANUEL CLEAVER (D-MO) FLIP-FLOPS: “While House Minority Leader Nancy Pelosi (D-Calif.) planned to denounce GOP leaders over the bill on Friday, the chairman of the Congressional Black Caucus, Rep. Emanuel Cleaver (D-Mo.), said on MSNBC he might support it. A Cleaver spokeswoman, Stephanie Young, contacted The Hill after his appearance to say the congressman misspoke and that he ‘does not and will not be supporting this bill.'” (Russell Berman, “House GOP Releases Payroll Tax Package Under Obama Veto Threat,” The Hill, 12/9/2011)

REP. COLLIN PETERSON (D-MN): “I’M AGAINST EVERYTHING”: ” ‘I’m against the payroll tax package, I’m against everything,’ Rep. Collin Peterson (D-Minn.) said.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

REP. PETER DEFAZIO (D-OR): “Rep. Peter DeFazio (D-Ore.) said he’s against the payroll tax cut extension anyway and hadn’t given much thought to the Keystone pipeline. ‘Neither of those are my bottom line,’ he said.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

REP. CHAKA FATAH (D-PA): DEMOCRATS WILL ABANDON SUPPORT FOR A JOB-CREATION PROJECT TO SIDE WITH OBAMA: “Some Democrats that have previously backed the pipeline project may not go against Obama this time. ‘Republicans want these issues merged and if they are merged, I won’t support it,’ Rep. Chaka Fattah (D-Pa.) said.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/2011)

While Democrats continue to play political games, the economic consequences of not authorizing the Keystone XL pipeline are all too real—holding up as many as 130,000 jobs:

“OBAMA PUNTS KEYSTONE XL PIPELINE” UNTIL AFTER 2012 ELECTION: (Dan Berman and Darren Goode, “Obama Punts Keystone XL Pipeline,” Politico, 11/10/2011)

GREEN GROUPS HAD THREATENED TO ABANDON OBAMA IF HE APPROVED THE PROJECT: “Environmental groups have been protesting the pipeline that would run from Alberta oil sands to Texas refineries, and there have been rumblings that greens would abandon Obama next fall if he approved it.” (Dan Berman and Darren Goode, “Obama Punts Keystone XL Pipeline,” Politico, 11/10/2011)

PROJECT HAD BROAD SUPPORT FROM UNIONS: “The pipeline has the support of many Republicans in Congress and also major labor unions like the Teamsters, Laborers’ International Union of North America and segments of the AFL-CIO.” (Dan Berman and Darren Goode, “Obama Punts Keystone XL Pipeline,” Politico, 11/10/2011)

KEYSTONE PROJECT WAS PROJECTED TO CREATE MORE THAN 20,000 “SHOVEL-READY” JOBS: (Editorial, “Keystone Cop-Out,” The Wall Street Journal, 11/11/2011)

LONG-TERM JOBS IMPACT: UP TO 130,000 JOBS: “Many of those 20,000 jobs on the construction of the pipeline would have been filled by skilled union members. Eventually, the completed pipeline was expected to result in as many as 130,000 jobs, many of them on the upper Texas Coast, where the heavy oil would be refined into 700,000 barrels of oil daily.” (Editorial, “Keystone Pipeline is the Wrong Call,” The Houston Chronicle, 11/11/2011)

BUILDING NEW PIPELINE INFRASTRUCTURE WOULD REDUCE RISK, STRENGTHEN U.S. ENERGY INDEPENDENCE:“Energy industry groups say expanding America’s pipeline infrastructure – including potential Obama administration approval of the Keystone XL pipeline to carry oil south from Canada – would minimize the odds of another wide price split in the future.” (Jim Tankersly, “A Crude Hit to Recovery,” National Journal, 11/29/2011)

FMR. TOP WHITE HOUSE ECONOMIST AUSTAN GOOLSBEE: KEYSTONE OPPONENTS “NAIVE”: “People in the U.S. opposing TransCanada Corp. (TRP)’s Keystone XL pipeline are being ‘naïve,’ said Austan Goolsbee, former chairman of the White House Council of Economic Advisers.” (Sean Pasternak, “Goolsbee Says U.S. Opponents of TransCanada’s Keystone Pipeline are Naive,” Bloomberg, 11/28/2011)

MORE GOOLSBEE: CANADIAN TAR SANDS WILL BE DEVELOPED WHETHER AMERICA GETS INVOLVED OR NOT: “‘It’s a bit naïve to think the tar sands would not be developed if they don’t build that pipeline,’ said Goolsbee, speaking today in Toronto at the Economic Club of Canada. ‘Eventually, it’s going to be built. It may go to the Pacific, it may go through Nebraska, but it’s going to be built somewhere.'” (Sean Pasternak, “Goolsbee Says U.S. Opponents of TransCanada’s Keystone Pipeline are Naive,” Bloomberg, 11/28/2011)

NATIONAL JOURNAL ANALYSIS: “U.S. ECONOMY MISSED OUT ON CREATING UP TO A QUARTER-MILLION JOBS THIS YEAR” BECAUSE OF LACKING ENERGY INFRASTRUCTURE: “The U.S. economy missed out on creating up to a quarter-million jobs this year because it lacked the infrastructure to capitalize on a rare divergence in global oil prices, a National Journal analysis shows.” (Jim Tankersly, “A Crude Hit to Recovery,” National Journal, 11/29/2011)