House Democrats in revolt over tax-cut deal

WASHINGTON - Angry House Democrats staged a noisy revolt yesterday against President Barack Obama's year-end tax cut agreement with Republican leaders, pledging to block a vote unless there are changes to scale back billions ticketed to help the rich. The White House still predicted quick passage.

"If it's take it or leave it, we'll leave it," said Rep. Lloyd Doggett (D-Texas) after a closed-door meeting in which rank-and-file Democrats chanted, "Just say no."

Despite the flare-up, the White House expressed confidence the measure would be approved before Congress goes home for the year, and Senate Democratic officials said talks were under way to add tax breaks for the alternative energy industry as a way of building support in the party.

"The deal will get passed," said presidential press secretary Robert Gibbs. There were no predictions to the contrary among senior Democrats on either side of the Capitol.

As announced by Obama on Monday, the deal would extend tax breaks at all income levels that are due to expire on Jan. 1, renew a program of jobless benefits for the long-term unemployed that is about to lapse within days and make a one-year cut in Social Security taxes. The two-year cost of the tax cut plan is estimated at up to $900 billion.

In other congressional action Thursday, Republicans blocked a last-ditch effort in the Senate to lift the military's ban on openly gay troops, dealing a major blow to gay rights groups and making it unlikely Congress could repeal "don't ask, don't tell" any time soon.

In addition, facing GOP objections, Democrats put aside the so-called Dream Act, which would have carved out a path to legal status for foreign-born youngsters brought to this country illegally. They said they'd try again to advance it before year's end.

Despite the additional red ink in the tax cut compromise, the president has said the plan is essential to add strength to a slowly recovering economy.

Senate Republican Leader Mitch McConnell has said he expects most of his rank and file to support the bill. Prominent House Republicans back it, too, although they have generally refrained from speaking out at a time when doing so would divert attention from the spectacle of Obama at odds with lawmakers of his own party.

It was not clear precisely what changes House Democrats would seek, but much of the criticism focused on a provision that would cut taxes on large estates.

Speaker Nancy Pelosi (D-Calif.) said, "That was a bridge too far for many of our members" already upset about Obama's decision to bow to Republican demands to extend tax cuts on incomes over $200,000 for individuals and $250,000 for couples.