GOP Bucks Boehner's Plan That Obama Threatens

WASHINGTON - US Representative Richard Neal has been thwarted for years in his effort to stop foreign insurance companies from shifting premiums paid by their US customers to offshore tax havens.

This week, it became clear that the Springfield Democrat will be frustrated once again, as Democrats and Republicans in Congress have left tax code changes out of their competing plans to raise the debt limit.

While much of the nation’s attention has been riveted on the determination of fiscal conservatives in the House to block any provision that raises new revenue, Neal’s unsuccessful effort to close what he calls an offshore tax loophole is an example of how business interests have stymied an array of tax code changes sought by President Obama, Democrats, and even some Republicans in the Senate.

“It’s the lobbying muscle,’’ Neal said. “Once something becomes embedded in the tax code, its very hard to extract.’’

Coincidentally, the aftermath of the tornadoes that tore through Western Massachusetts last month, causing an estimated $200 million in damage, offers a peek at the particular strategy on some insurance premiums that Neal and others say is unfair to US taxpayers.

So far, it doesn't appear Cantor's efforts are working. Rep. Jim Jordan, who chairs the conservative Republican Study Committee, said, "I am confident as of this morning that there were not 218 Republicans in support of this plan," The Washington Post's Felicia Sonmez reports. (No hard feelings though: Jordan insists that he and fellow conservatives "appreciate the speaker's hard work.") Though she's out on the campaign trail, Rep. Michele Bachmann wants everyone to know she does not back Boehner's plan--her staffers told the liberal site Think Progress, "the congresswoman is standing firm opposing the Boehner plan."

The Wall Street Journal's Jonathan Weisman tweets that first the Republican Study Committee, then an arm of the Heritage Foundation, and now the Club for Growth are all opposing Boehner's plan: "This is a whip's nightmare -- or a real [break] for compromise." Could conservatives' abandonment of Boehner mean there's a chance to compromise with Democrats? Probably not. The New York Times' Jada F. Smith reports that House Minority Whip Steny Hoyer says when it's time to vote Wednesday, Boehner's plan will get "very few" Democratic votes, if any. And the White House's Office of Management and Budget released a memo saying if the plan, "is presented to the President, the President’s senior advisors would recommend that he veto this bill."

Sen. Kent Conrad, of the declared-dead-then-revived-now-probably-dead-again Gang of Six plan, says the "Boehner plan probably has to fail in the House or Senate before debt limit end game becomes clear," Brian Beutler reports. That's one of two scenarios Democrats are gaming out with the hopes of exploiting the disunity in the Republican ranks, The Washington Post's Greg Sargent reports. Sargent explains.