Tax Deal Denied By House Democrats

House Democrats voted against accepting a compromise on the Bush era tax cuts struck between Republicans and the White House.

“In the Caucus today, House Democrats supported a resolution to reject the Senate Republican tax provisions as currently written,” Speaker Nancy Pelosi (D-Calif.) said in a statement. “We will continue discussions with the President and our Democratic and Republican colleagues in the days ahead to improve the proposal before it comes to the House floor for a vote.”

The decision follows a serious push from the White House in favor of the deal. Vice President Joe Biden went to the Hill Wednesday in an attempt to rally support and President Obama warned of economic catastrophe if the framework fails.

The compromise would provide a two year extension of the Bush era tax cuts for all Americans in exchange for prolonging unemployment benefits for 13 months as well as the continuation of a number of tax breaks in the Recovery Act and a small cut to the payroll tax.

The move went against the wishes of Democrats, who disapproved of extending the tax cuts for Americans making over $250,000 a year.