With businesses on the verge of getting tax breaks worth $440 billion, Obama has threatened to veto the tax deal if it goes through.
In explaining the reason why, a White House spokeswoman, Jennifer Friedman said, “The president would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families.”
This deal has been negotiated by the House Republicans and the aide of Harry Reid, the outgoing majority leader. Unfortunately, this deal has not only split the Democrats but also soured relations with the Obama administration as well. This is clearly an indication as to the power shift that has taken place in favor of the GOP ever since the election victories this month.
Of course, Obama, by threatening to use his veto powers, has shown that he is willing to use the authority he has as the President. Of course, this deal which is heavily in favor of corporations could have negative implication for tax and budget negotiations in the near future.
This veto will be the third and the most important one of all of Obama’s Presidency since he sent negotiators back to the table to get the Republicans to adopt liberal measures such as extending the child tax credit for the working poor.
Despite this threat by the President, supporters of the deal in both parties say that it will give businesses more certainty and which will encourage them to make investments.
Nancy Pelosi, the House minority leader, has already called Democrats to cast their vote in support of the President’s move to veto the tax deal.