House GOP Rejects Short-Term Payroll Tax Cut
- Posted on December 20, 2011 at 2:36pm by
Christopher Santarelli
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(AP) The House Tuesday rejected a plan backed by President Barack Obama that would have extended a payroll tax cut and jobless benefits for two months. The move raises the stakes in a holiday season clash that seems likely to result in a lapse in a tax cut enjoyed by 160 million workers.
Obama, in an appearance in the White House briefing room after the House vote, said the Senate bipartisan compromise is the “only viable way” to prevent a tax increase on Jan. 1.
“The clock is ticking. Time is running out,” Obama said. He blamed “faction” of Republicans in the House for holding up the payroll tax cut extension.
House Republicans controlling the chamber want instead immediate negotiations on a year-long plan with the Senate – where the top Democrat again ruled out talks until the House passes the stopgap measure.
If Congress doesn’t break the stalemate and pass a bill by the end of the year, payroll taxes will go up by 2 percentage points for 160 million workers on Jan. 1. Almost 2 million people could lose unemployment benefits in January as well, and doctors would bear big cuts in Medicare payments.
The House vote, 229-193, kicks the measure back to the Senate, where the bipartisan two-month measure passed on Saturday by a sweeping 89-10 vote. The Senate then promptly left Washington for the holidays. Senate Majority Leader Harry Reid, D-Nev., says he won‘t allow bargaining until the House approves the Senate’s short-term measure.
“I have been trying to negotiate a yearlong extension with Republicans for weeks, and I am happy to continue doing so as soon as the House of Representatives passes the bipartisan compromise to protect middle-class families, but not before then,” said Senate Majority leader Harry Reid, D-Nev.
The House vote caps a partisan debate on Obama’s jobs agenda, which has featured numerous campaign-style appearances but little real bipartisan negotiation, other than Senate talks last week that produced the two-month extension.
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 averaging about $300 a week for the long-term unemployed, and would prevent a 27 percent cut in Medicare payments to doctors. The $33 billion cost would be financed by a .10 percentage point hike in home loan guarantee fees charged by mortgage giants Fannie Mae and Freddie Mac, which the administration says would raise the monthly payment on a typical $210,000 loan by about $15 a month.
The House passed a separate plan last week that would have extended the payroll tax cut for one year. But that version also contained spending cuts opposed by Democrats and tighter rules for jobless benefits.
Both the House and Senate bills included a provision designed to force Obama to make a decision on construction of the controversial Keystone XL pipeline, which would deliver up to 700,000 barrels of oil daily from tar sands in Alberta, Canada, to refineries in Texas. The provision requires him to issue the needed permit unless he declares the pipeline would not serve the national interest.
Democrats and the White House had reversed course and accepted GOP demands on Keystone, which contributed to sweeping GOP support for the Senate measure. The White House signaled that Obama would block the project.
Until this weekend, it was assumed that House Speaker John Boehner, R-Ohio, had signed off on the Senate measure. After all, it was agreed to by Boehner’s trusted confidante, Senate GOP Leader Mitch McConnell of Kentucky. Boehner declined on several occasions Friday to reject the idea.
But rank-and-file House Republicans erupted in frustration at the Senate measure, which drops changes to the unemployment insurance system pressed by conservatives, a freeze in the salaries of federal workers and cuts to President Barack 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 – pressuring House lawmakers to go along with its plan. Tuesday’s vote technically puts the onus back on the Senate – but also invites a full-blown battle with Obama, whose poll numbers have inched up during the battling over his jobs initiative.
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.
“If you say you want to do this for a year, put your vote where your rhetoric is,” said Rep. Jeb Hensarling of Texas, a member of the House GOP leadership. “If you’re not willing to work over the holidays, admit to the American people that you’re not willing to work over the holidays.”
“Right now Americans want two things from their Congress: middle class tax relief and compromise,” said Rep. Steve Israel of New York, chairman of the House Democrats’ fundraising committee. “House Republican partisanship failed on both counts.”
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Comments (55)
finadena
Posted on December 20, 2011 at 8:37pmWhat we have here is not a form of compromise. I’m kinda confused. The House sent a Tax Payroll bill for a full year of tax cuts just as the prez requested a bi-partisan support to the senate, The senate rejected the republican’s original version, they said they didn’t like it. So, the senate revised it with some addition and extended for 2 months. Now the senate expects the House to pass it with all the changes and the House should not question why changes were made. So, now they are putting the blame on the House for the delay, There are 16 bills passed by the House placed on hold in the Senate. GO FIGURE THAT OUT.
Report Post »Jfifthwheel
Posted on December 20, 2011 at 6:28pmHold strong Tea Party
Report Post »Gold Coin & Economic News
Posted on December 20, 2011 at 7:09pm“The Senate’s short-term, lowest-common-denominator approach would renew a 2 percentage point cut in the Social Security payroll tax”
Do you see what a ruse this is from Obama? Come on people, WTF!, Obama is nothing but dangerous, dangerous, dangerous. Why would Obama want to CUT FUNDING for Social Security? Why? Think about that. The payroll tax is the only thing that directly funds Social Security and Social Security is bankrupt beyond belief and our Commie In Chief wants to lower the amount of money going into the program.
Why, oh why do you think he is doing that?
Report Post »koon_cat
Posted on December 20, 2011 at 5:45pmPeople, people, people….we are being led to slaughter with propaganda! Payroll taxes are your Social Security and Medicare deductions. I am the recipient of Medicare. I cannot draw SS because I do not have the necessary number of quarters. Here’s my take on the current ploy–if the Democrats keep extending the so called “tax cut,” you will be forced into ObamaCare…nice….
Report Post »rogue operator
Posted on December 20, 2011 at 5:43pmThe Republicans finally decided to “put up or shut up.” http://tinyurl.com/7pzbbvy
Report Post »EqualJustice
Posted on December 20, 2011 at 5:41pmCan’t do vidoes.. GO HERE then.. Allen West http://www.youtube.com/watch?v=Ot4hQRTF6rk&feature=player_embedded
Report Post »EqualJustice
Posted on December 20, 2011 at 5:40pmhttp://www.youtube.com/watch?v=Ot4hQRTF6rk&feature=player_embedded The SENATE lies,…AGAIN
Report Post »SpartanPride
Posted on December 20, 2011 at 5:13pmDingy Harry is a spineless wussy-man. Also, he is a treasonous liar.
Report Post »Locked
Posted on December 20, 2011 at 4:38pm“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.”
Meh, it‘s obvious that the House GOP is the one that won’t compromise; the Senate GOP was all for this plan. Depending on where your views lie, that’s either a good thing or a bad one. On the one hand, it raises taxes (which is bad), but on the other, it lessens spending (in the form of benefits), which can be good.
Report Post »AFeatherAdrift
Posted on December 20, 2011 at 4:30pmHope you little jerks all enjoy your shrunken paychecks. Boehner couldn’t deliver, and then refused to allow a vote because he was afraid the not TEANUTZ would vote it through anyhow. You guys are so brain dead you will sell your grandmother if the GOP elites told you to. Continue voting against your own interests.
Report Post »13th Imam
Posted on December 20, 2011 at 4:38pmYa mean we can vote fo mo mone???. Fwee money?? Ya mean Harry, Barry and Curly(Nancy) are weally on our side?? whoda thunk it?? Not me. Bawwey‘s stash must be flush from the influx of John Corzine’s score. Weally??? Fwee moneee???
Report Post »macpappy
Posted on December 20, 2011 at 4:54pmMaybe you did not understand the ramifacations of the bill. The size of your paycheck is more dictated by entitlements, debt, and Washington Waste than this little tax increase; which isn’t even an increase.
Report Post »rogue operator
Posted on December 20, 2011 at 5:41pmDude, if you had brains you’d be dangerous. The point of contention is how long the tax holiday is. Democrats love to play Santa Claus with our own money, we know, but looks like you cretins are gonna have to do better. The megabus bill is crocked full of crap anyway. http://tinyurl.com/7pzbbvy
Report Post »macpappy
Posted on December 20, 2011 at 4:28pmI think most Amercans know by now that it will be a lot more than a tax hike to get us out of this mess. the dems are backing a bad bet on this one. Wait until inflation hits the welfare lines, then he loses the black vote.
Report Post »We are Americans
Posted on December 20, 2011 at 5:24pmAs long as they didnt raise taxes on people
Report Post »making over 350k we will be ok. No need
for a middle class. I find it funny it’s attached
to a pipeline. Support big oil or we will
make u pay more taxes, cut unemployment,
and cut medicare payments to doctors who
help poor people. They should just enslave
us now. Maybe when Newt starts arresting
judges things will change. Or they could just
say anyone not in favor of the pipeline
sympathizes with terrorists and arrest us
with no rights. Congress hitting homeruns
everyday.
macpappy
Posted on December 20, 2011 at 8:39pmthe pipeline would mean about 10,000 jobs where I live. It is the SSN, Medicare, unemployment, and all the other giveaways that are stranglign the economy of this country. The entitlements and unions have ruined this country. Hard measures are called for.
Report Post »COFemale
Posted on December 20, 2011 at 4:25pmThis back and forth is to be expected. When you have both side trying to prove whose _____________ is bigger, you get this crap. Frankly, if I had my way, both would be whacked off Lorena Bobbit style and thrown into the icy Potomac.
This is why no bill should allow any other bill to be added in. We vote whether or not to extend the payroll tax cuts for one year, Yes or No. If No, then vote for two months. Do not attach your pet projects to the bill. One topic, one vote. If you moved to this, then Congress just might get something done and we wouldn’t have this blaming back and forth. We would know the real reason’s why someone voted Yes or No.
I challenge those in Congress to pass a bill that restricts only one topic. Do not add 15 different topics and then only focus on what you think is important. I don’t give a rats patooty. I want to know what you are NOT saying.
We need to wipe Congress clean and get the trouble makers out on both sides. We are not a game you can play where there are no losers. The American people are the losers from both groups. Send a message to your Congressman and Senator – shape up or we will ship you out.
Report Post »13th Imam
Posted on December 20, 2011 at 4:33pmThen how could they regulate what lightbulbs are ok or that insurance company‘s can’t sell open policy‘s or how much Dues can a monopoly union can steal from it’s forced membership. The common denominator is that most of these thieves are Lawyers. there should be a quota system on how many Lawyers can be in the Fed Gov (Pres, VP,Senate, House) (537) at one time. I’d say 5 wouid be fair. The rest can go back to chasing ambulances.
Report Post »We are Americans
Posted on December 20, 2011 at 6:01pmSo true. Then we could have one page laws.
Report Post »Their all on the take from the lobbyists. Criminals.
13th Imam
Posted on December 20, 2011 at 4:10pmWhere’s the Senate?? Why does the House have to vote on a Senate Bill??
All bills for raising revenue(Payroll TAX) shall ORIGINATE in the House of Reps, but the Senate may propose or concur with AMENDMENTS as on other bills.
Report Post »welovetheUSA
Posted on December 20, 2011 at 4:04pmGood………..what the heck is all the Fuss over this stupid bill………..its taking away billions of dollars from Social Security and Medicare…………it creats No jobs, and no average working Misses this tax. We are not all stupid out here…………this tax is a political Joke, period.
Report Post »cuinsong
Posted on December 20, 2011 at 4:00pmWell are you ready for another must pass bill in congress
that we will not have time to deliberate or even the text to
use to see what’s in the bill? Some time ago I decided to
write a song about how both sides manipulate the public
into accepting what is a corrupt and broken congress!!!
The latest bill is another smoke screen to hide what is
really going on! Both sides are crooked !!
When my frustration gets to high I write song’s
Report Post »and this song is about the disharmony I see and feel.
http://www.reverbnation.com/play_now/song_9134749
wisehiney
Posted on December 20, 2011 at 3:43pmHold strong Tea Party!
Report Post »AvengerK
Posted on December 20, 2011 at 3:53pmThe GOP is playing with dynamite here. Harry Reid is playing his usual passive/aggressive games and is now holding all the cards. Obama will demagogue this until November 2012 if we see a tax hike.
Report Post »sWampy
Posted on December 20, 2011 at 4:00pmIt’s not a tax cut, it’s a cut in social security payments, and a tax hike for our kids and grand kids, why the hell aren’t these republican losers on tv 24-7 explaining to the illiterate liberals what this really is, instead of letting the liberals get away with yet another lie.
Report Post »mairbair
Posted on December 20, 2011 at 8:42pmJust remember my patriotic friends we have a hologram as president. You see him,you hear him, but you cannot believe a word he says nor trust anything he does. Until our reps see the emperor as he is eect no improvement.
Report Post »garyM
Posted on December 20, 2011 at 3:24pmFRANKING COMMITTEE HOUSE MEMBERS, EVIDENTLY ALL HEATHENS ON BOTH SIDES OF THE ISLE! No Merry Christmas on mass postage or emails that are going out anyway!
Report Post »what a CROCK!
http://cha.house.gov/about/membership
macpappy
Posted on December 20, 2011 at 4:26pmI don’t think any tax payer money should be used for any shout out to a contributor.
Report Post »Make them pay for their own damn postage.
Gonzo
Posted on December 20, 2011 at 3:13pmOh my, those evil Republicans want to hurt middle class Americans again. Save us Obama…save us :-O
Report Post »HKS
Posted on December 20, 2011 at 3:33pmDid I hear that politicafact had voted the dems, “lairs of the year”. Nuff said.
Report Post »CatB
Posted on December 20, 2011 at 3:47pmYes .. the House extends the Tax reduction for 1 YEAR .. the Senate .. 2 months .. and the MSM talks about the House Republicans taking away your tax reduction … LIARS both Obama, Senate and the MSM.
TEA!
Report Post »Therightsofbilly
Posted on December 20, 2011 at 3:50pmAs long as were on the topic of democrats / liars, Here is an interesting read……..
http://www.chrismartenson.com/forum/where-are-three-men-who-brought-down-wall-streeat/66950
Report Post »Fly on the Wall
Posted on December 20, 2011 at 4:21pmDems wanted a year long deal but the R’s put in all kinds of extras that were unacceptable, thus going to 2 months and taking some of those things out. McConnell suggested Boehner accept it and push it…but house R’s refused to follow his lead (again).
Report Post »HKS
Posted on December 20, 2011 at 4:34pm@ fly, What is all kinds of extras? Decide on the pipeline and extend the cuts to a year? I have heard of nothing more than that.
Report Post »lukerw
Posted on December 20, 2011 at 3:04pmWHY ARE WE DOING THIS at all? This is the Current Funding for Current Payments of SOCIAL SECURITY!
WHY kick GrandMa & GrandPa?
Report Post »grudgywoof
Posted on December 20, 2011 at 2:53pmAmen…..All dems want to do is use this for an issue in the election. 2 months is stupid either do it or don’t. Stick to your guns tea party caucus! The press is going to run you through the grinder for it but it’s the right thing to do. TEA!
Report Post »CatB
Posted on December 20, 2011 at 3:48pmI agree .. stand strong .. AND GET ON TV AS MUCH AS YOU CAN!!! Call out the Senate Dems for wanting to kick the can .. and NOT supporting TAX CUTS!
TEA!
Report Post »Darmok and Jalad at Tanagra
Posted on December 20, 2011 at 4:08pmGetting on TV doesn’t mean being a featured spot on COPS or Judge Joe Brown either. Just clarifying.
Report Post »Darmok and Jalad at Tanagra
Posted on December 20, 2011 at 2:51pmPlease don’t let me keep anymore money. I have run out of places to put it all.
Report Post »TXPilot
Posted on December 20, 2011 at 3:02pmFor some reason, I doubt the millions of people out there that Obama has put out of work, are going to care much about this story.
Report Post »Gonzo
Posted on December 20, 2011 at 3:20pmI had the same problem. I started using $100 bills to light my $300 cigars. Give it a shot…it helps.
Report Post »Darmok and Jalad at Tanagra
Posted on December 20, 2011 at 4:25pmI tried using it as TP, not very soft or absorbant.
Report Post »True American66
Posted on December 20, 2011 at 2:50pmWho does Harry Reid think he is?….he won’t ALLOW negotiations?….he is an embarrassment to this nation. I can’t wait until he is no longer Majority leader….it will be just like ‘ole Nancy losing her big gavel….Awesome!
Report Post »CatB
Posted on December 20, 2011 at 3:51pmNevada could have done us all a favor .. but since they didn’t .. let’s take back the Senate from the Dictatorship of Reid!
Report Post »NeverSurrender
Posted on December 20, 2011 at 2:49pmWhy exactly is the Blaze running with the same headline as the MSM? “House GOP Rejects Short-Term Payroll Tax Cut”
The Blaze’s headline should have been “Senate Dems Reject Year Long Payroll Tax Cut.”
Report Post »HKS
Posted on December 20, 2011 at 3:00pmGood point, libs seem to control the headlines, even when they are wrong.
Report Post »CatB
Posted on December 20, 2011 at 3:54pmAgree .. we MUST get the word out there .. doing the job the MSM refuses to do…. inform your friends ..especially the libs who will believe anything the MSM says!
House 1 year .. .Senate 2 months .. which tax cut would you choose? Also House we get a Canadian Pipeline .. Senate gives OBAMA 2 months to “decide” .. what do you think he will “decide” .. He doesn’t want any American jobs .. and the pipeline costs taxpayers $0!
TEA!
Report Post »Tri-ox
Posted on December 20, 2011 at 2:46pmThe two-month extension put forward by obama’s dopey-dimwit-democrats is a joke – and not a viable option. The extension must be at least a year – Republicans are wise to push for a REAL extension.
Report Post »True American66
Posted on December 20, 2011 at 2:52pmI agree!!!
Report Post »HKS
Posted on December 20, 2011 at 3:24pmAgree, Democrats want to spend their political lives doing the same thing over and over and over again. Wonder why they never do anything? Two months is a joke, right? I’ll think about the pipeline for tow months? Waste of time.
Report Post »garyM
Posted on December 20, 2011 at 2:44pmI just wished we had a house that would have gone against everything Obama came up with from day one and we would be in this shape. He has got away with so much now, anything they do is portrayed to look bad. If I were a congressman, I would vote against everything Obama, Reid and Pelosi wanted!
Report Post »REPUBLICANINCALI
Posted on December 20, 2011 at 2:39pmIt’s okay, don’t cry.
Report Post »TSUNAMI-22
Posted on December 20, 2011 at 2:45pmIt’s all racist…….or something. Yeah, that’s the ticket. Eric “Pinocchio” Holder says so.
Report Post »JLGunner
Posted on December 20, 2011 at 3:00pmA temporary tax break with a permanant tax hike. I‘m glad they didn’t pass it. Congress’ average wage is about $178,000 a year and all that gets done is a bunch of political game playing. A partime Congress with a salary cut sounds good to me.
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