Up until today, one of the arguments against impeaching Bush immediately has been the argument that we can't remove him from office, because the Republicans in Congress won't vote for it.
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I have agreed with that argument. So far, nothing has happened since the new Senate went into session to realistically argue that somehow the Republicans sitting in the Senate would change their votes. Bush's action stating that executive privilege is a bar to Congressional contempt citations changes that.
The Senate has historically been a proud body, mindful of its power and its place as a co-equal branch of government. The more Bush treats the Senate and the House as irrelevant, I think the Republicans in the House and Senate are going to rebel, and attempt to put the Executive in its place. If the votes for removing Bush from office come, they are going to come from Bush's blatant usurpation of the power and privileges of the House and Senate. Before the new Congress, House and Senate Republicans didn't see Bush as a threat to Congressional power, they saw themselves working as part of a team to assure Republican control of both branches of government. With the advent of Democratic investigations, and the fracturing of Republican Party unity over Iraq, it's obvious now even to Republicans themselves that Bush treated Congress as a pawn, not a partner.
This may not be entirely satisfying to those who want Bush impeached for matters of principle. Still, Bush and Co are laying the groundwork for removal from office themselves. Actions like this will only serve to split Congressional support from Bush. Impeachment may not happen now, but if Bush continues to usurp power for Congress, it will happen.