Dec. 17 (Bloomberg) -- President Barack Obama today will meet with union leaders to try to heal a relationship strained by his agreement to extend Bush-era tax cuts. Behind the scenes, the White House is waging a broader campaign among Democratic Party loyalists to undo damage over the deal.
The administration is making an “all hands on deck” effort to contact party activists angry over the accord, Jared Bernstein, Vice President Joseph Biden’s chief economic adviser, said before the U.S. House last night passed the $858 billion bill. Bernstein has made phone calls and held meetings with activists to defend a deal with Republicans that continues tax reductions for all Americans, including top earners.
“The president is trying to build consensus among labor leaders for his compromise tax policy” said Amy B. Dean, a former official with the AFL-CIO labor federation. The administration has “no problem reaching out to the labor movement when they need labor to be part of their electoral coalition. But they quickly forget that labor has a role to play in their governing coalition.”
Obama today will sign the bill, which extends for two years all Bush-era tax cuts. Before the House voted 277-148 for final passage, lawmakers defeated an amendment crafted by some Democrats to express displeasure with the legislation and especially a Republican-backed proposal to cut the estate tax.
‘Fight Harder’
The president may find union leaders hard to win over during today’s meeting. In a statement after the House vote, AFL-CIO President Richard Trumka said “this deal comes at a terrible price” and vowed to “redouble” efforts and “fight harder” on behalf of working people.
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