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AP – Capitol Hill negotiators Thursday officially unveiled hard-fought compromise legislation to prevent 160 million workers from getting slapped with a payroll tax hike, but it ran into turbulence in the Senate, where Republicans withheld support and several Democrats attacked it.
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House Speaker John Boehner at a news conference on Capitol Hill in Washington, Monday, Dec. 19, 2011, as Majority Whip Kevin McCarthy, R-Calif., listens at right. (AP Photo/Jose Luis Magana)
House Speaker John Boehner at a news conference on Capitol Hill in Washington, Monday, Dec. 19, 2011, as Majority Whip Kevin McCarthy, R-Calif., listens at right. (AP Photo/Jose Luis Magana)
WASHINGTON (AP) ? With the Senate adjourned for the holidays, House Republicans are moving to shelve a bipartisan two-month extension of the Social Security payroll tax cut that cleared the Senate over the weekend and are demanding instead that their fellow lawmakers return to the Capitol for negotiations.
After a spate of bipartisanship last week, the combatants are back in full-throated warfare over President Barack Obama’s payroll tax initiative and other expiring measures, including jobless benefits for almost 1.8 million people who will lose them next month if Congress doesn’t act.
Instead of accepting a two-month stopgap Senate measure that would ensure fighting continues into February, Republicans said they would move Tuesday to set up an official House-Senate negotiating panel known as a conference committee. The Senate’s top Democrat said he would refuse to negotiate until the House passes the short-term version.
Both sides insist they want to extend the provisions before a Dec. 31 deadline, but that will prove difficult. After overwhelmingly passing a two-month extension Saturday, senators raced for the exits in the belief that the House would see no alternative but to go along. The Senate isn’t scheduled to resume legislative work until Jan. 23.
The Senate’s short-term, lowest-common-denominator approach would renew a 2 percentage point cut in the Social Security payroll tax, plus jobless benefits for the long-term unemployed, and would prevent a huge cut in Medicare payments to doctors.
But House Republicans quickly erupted in frustration at the Senate measure, which drops changes to the unemployment insurance system pressed by conservatives, along with cuts to Obama’s health care law. Also driving their frustration was that the Senate, as it so often does, appeared intent on leaving the House holding the bag ? leaving it no choice but to go along.
“With millions of Americans struggling to make ends meet, it would be unconscionable for Speaker (John) Boehner to block a bipartisan agreement that would protect middle-class families from the thousand-dollar tax increase looming on January 1st,” said Senate Majority Leader Harry Reid, D-Nev., who negotiated the two-month extension with Senate GOP leader Mitch McConnell of Kentucky. The 2 percentage point tax cut provides about a $1,000 annual tax cut for a typical earner making about $50,000 a year.
Both sides were eager to position themselves as the strongest advocates of the payroll tax cut, with House Republicans accusing the Senate of lollygagging on vacation and Senate Democrats countering that the House was seeking a partisan battle rather than taking the obvious route of approving the stopgap bill to buy more time for negotiations.
Just a couple of weeks after many Republicans made it plain they thought that the payroll tax cut ? the centerpiece of Obama’s autumn jobs agenda ? hadn’t worked and that renewing it was a waste of money, Republicans emerged from a closed-door meeting touting their support for the president.
“Do you want to do something for 60 days that kicks the can down the road?” said Rep. Jeb Hensarling, R-Texas. “Or do you want to do what the president asked us to do? And we’re people who don’t agree with the president all that often.”
“I’ve never seen us so unified,” Rep. Louie Gohmert, R-Texas, said as he left a two-hour, closed-door meeting Monday night where Republicans firmed up their plans. He said the payroll tax cut that has been in effect this year failed to create any jobs, but he favored extending it for another 12 months because “it’s tough to raise taxes when you’re in a down economy.”
Congress’ approval ratings are in the cellar, in part because of repeated partisan confrontations that brought the Treasury to the brink of a first-ever default last summer, and more than once pushed the vast federal establishment to the edge of a partial shutdown.
This time, unlike the others, Republican divisions were prominently on display.
The two-month measure that cleared the Senate, 89-10, on Saturday had the full support of McConnell, the Republican leader, who also told reporters he was optimistic the House would sign on. Senate negotiators had tried to agree on a compromise to cover a full year, but were unable to come up with enough savings to offset the cost and prevent deficits from rising.
The two-month extension was a fallback, and officials say that when McConnell personally informed Boehner and House Majority Leader Eric Cantor of the deal at a private meeting, they said they would check with their rank and file.
But on Saturday, restive House conservatives made clear during a telephone conference call that they were unhappy with the measure.
Ironically, until the House rank and file revolted, it appeared that Republicans had outmaneuvered Democrats and Obama on one point.
The two-month measure that cleared the Senate required the president to decide within 60 days to allow construction on a proposed oil pipeline that promises thousands of construction jobs. Obama had threatened to veto legislation that included the requirement, then did an about-face.
The president recently announced he was delaying a decision on the pipeline until after the 2012 elections, meaning that while seeking a new term, he would not have to choose between disappointing environmentalists who oppose the project and blue-collar unions that support it.
Associated Press
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WASHINGTON ? Top House Republicans rebelled Sunday against a bipartisan, Senate-approved bill extending payroll tax cuts and jobless benefits for two months, reigniting a politically fueled holiday-season clash that had seemed all but doused.
The House GOP defiance cast uncertainty over how quickly Congress would forestall a tax increase otherwise heading straight at 160 million workers beginning New Year’s Day. House Speaker John Boehner, R-Ohio, said it could be finished within two weeks, which suggested that lawmakers might have to spend much of their usual holiday break battling each other in the Capitol.
A day after rank-and-file House GOP lawmakers used a conference call to spew venom against the Senate-passed bill, Boehner said he opposed the legislation and wanted congressional bargainers to craft a new, year-long version.
“The president said we shouldn’t be going anywhere without getting our work done,” Boehner said on NBC’s “Meet the Press,” referring to President Barack Obama’s oft-repeated promise to postpone his Christmastime trip to Hawaii if the legislation was not finished. “Let’s get our work done, let’s do this for a year.”
A spokeswoman for House Majority Leader Eric Cantor, R-Va., said the House would vote Monday to either request formal bargaining with the Senate or to make the legislation “responsible and in line with the needs of hard-working taxpayers and middle-class families.”
Cantor spokeswoman Laena Fallon did not specify what those changes might be, beyond a longer-lasting bill. Boehner, though, expressed support for “reasonable reductions in spending” in a House-approved payroll tax bill and for provisions that blocked some Obama administration anti-pollution rules.
Democrats leaped at what they saw as a chance to champion lower- and middle-income Americans by accusing Republicans of threatening a wide tax increase unless their demands are met. If Congress doesn’t act, workers would see their take-home checks cut by 2 percentage points beginning Jan. 1, when this year’s 4.2 percent payroll tax reverts to its normal 6.2 percent.
“They should pass the two month extension now to avoid a devastating tax hike from hitting the middle class in just 13 days,” said Dan Pfeiffer, the White House communications director. “It’s time House Republicans stop playing politics and get the job done for the American people.
House Minority Leader Nancy Pelosi said by opposing the Senate bill, “Tea party House Republicans are walking away once again, showing their extremism and clearly demonstrating that they never intended to give the middle class a tax cut,” said House Minority Leader Nancy Pelosi, D-Calif.
Adam Jentleson, spokesman for Senate Majority Leader Harry Reid, said the Nevada Democrat would be “happy to continue negotiating a yearlong extension as soon as the House passes the Senate’s short-term, bipartisan compromise to make sure middle-class families will not be hit by a thousand-dollar tax hike on January 1.”
Keeping this year’s 2 percentage point payroll tax cut in effect through 2012 would produce $1,000 in savings for a family earning $50,000 a year. The two-month version would be worth about $170 for the same household.
On Saturday, the Senate voted 89-10 for its legislation, which was negotiated by Senate Republican and Democratic leaders and backed by solid majorities of senators from both parties. It would provide a two-month extension of the payroll tax cuts and jobless benefits and prevent scheduled 27 percent cuts to doctors’ Medicare reimbursements during that period, reductions that could convince physicians to stop treating elderly patients covered by the program.
That measure was praised by Obama, and even Senate Minority Leader Mitch McConnell, R-Ky., expressed optimism that the measure would become law. Initial bills produced by both sides lasted for a year, but negotiators working on the final product could not agree to savings that would finance such a measure, likely to cost roughly $200 billion.
Reid and Sen. Charles Schumer, D-N.Y., the No. 3 Senate leader, said Boehner had asked McConnell and Reid to negotiate a compromise, seemingly suggesting that Boehner had walked away from a deal. Republicans said that is untrue and said the House GOP played no role in last week’s bargaining between the Senate leaders.
Boehner won support Sunday from McConnell. His spokesman, Donald Stewart, said the best way to craft a new bill “and provide certainty for job creators, employees and the long-term unemployed is through regular order” ? a term used to describe the normal process of negotiations between the House and Senate.
The Senate bill included language cherished by Republicans giving Obama 60 days to approve an oil pipeline stretching from western Canada’s tar sands to Texas Gulf Coast refineries, unless he declared the project hurt the national interest. GOP leaders had thought that provision would assure enough votes to pass the overall legislation.
Obama had previously said he was delaying a decision on the Keystone XL pipeline until 2013, allowing him to wait until after next November’s elections to choose between unions favoring the project’s thousands of jobs and environmentalists opposed to its potential pollution and massive energy use. Obama initially threatened to kill the payroll tax bill if it included the pipeline language but eventually retreated.
Despite the Keystone provision, House Republicans used a Saturday conference call to express anger about the Senate bill and frustration that their leaders seemed willing to agree to the compromise, participants said. Many demanded a return to some of the House bill’s spending cuts, including reductions in Obama’s health care overhaul law of last year, and several expressed a willingness to work through the holidays to revamp the legislation, Republicans said.
Though GOP leaders support extending the payroll tax and jobless benefits, some House Republicans question doing that, arguing it won’t produce jobs and could weaken Social Security. The payroll tax, subtracted from workers’ paychecks, is used to finance Social Security.
The Senate adjourned Saturday and is not scheduled to conduct legislative work until late January. That could potentially complicate quick work on a revised payroll tax bill because all 100 senators would have to agree to let the Senate hold any votes before then.
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