House Passes Payroll Tax Cut Extension With Keystone Pipeline Provision
- Posted on December 13, 2011 at 8:10pm by
Tiffany Gabbay
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WASHINGTON (The Blaze/AP) — Defiant Republicans pushed legislation through the House Tuesday night that would keep alive Social Security payroll tax cuts for some 160 million Americans at President Barack Obama’s request – but also would require construction of a Canada-to-Texas oil pipeline that has sparked a White House veto threat.
Passage, on a largely party-line vote of 234-193, sent the measure toward its certain demise in the Democratic-controlled Senate, triggering the final partisan showdown of a remarkably quarrelsome year of divided government.
The legislation “extends the payroll tax relief, extends and reforms unemployment insurance and protects Social Security – without job-killing tax hikes,” Republican House Speaker John Boehner declared after the measure had cleared.
Referring to the controversy over the Keystone XL pipeline, he added, “Our bill includes sensible, bipartisan measures to help the private sector create jobs.”
On a long day of finger pointing, however, House Democrats accused Republicans of protecting “millionaires and billionaires, `’ and Senate Majority Leader Harry Reid, D-Nev., derided the GOP-backed pipeline provision as “ideological candy” for the tea party-set.
After the House vote, the White House urged Congress on in finishing work on extending the tax cuts and jobless aid. Press Secretary Jay Carney issued a statement that didn‘t mention the pipeline but renewed Obama’s insistence that the legislation be paid for, at least in part, by “asking the wealthiest Americans to pay their fair share” in higher tax levies.
Lawmakers “cannot go on vacation before agreeing to prevent a tax hike on 160 million Americans and extending unemployment insurance,” he said.
Republicans mocked Obama’s objections to their version of the bill.
“Mr. President, we can’t wait,” said House Majority Leader Eric Cantor of Virginia, employing a refrain the White House often uses to criticize Republicans for failing to take steps to improve an economy struggling to recover from the worst recession in decades.
Voting in favor of the legislation were 224 Republicans and 10 Democrats, while 179 Democrats and 14 Republicans opposed it.
At its core, the measure did include key parts of the jobs program that Obama asked Congress to approve in September.
The Social Security payroll tax cuts approved a year ago to help stimulate the economy would be extended through 2012, avoiding a loss of take-home income for wage-earners. An expiring program of unemployment benefits for the long-term jobless would remain in place, although at reduced levels that the administration said would cut off aid for 3.3 million.
A third major component would avert a threatened 27 percent cut in payments to doctors who treat Medicare patients, a provision Republicans added to appeal to conservatives but one that the White House and Democrats embrace, too.
While the tax and unemployment provisions were less generous than Obama sought, he and Republicans clashed principally over steps to cover the estimated $180 billion cost of the measure, and on the proposed 1,700-mile Keystone XL oil pipeline from Canada through environmentally sensitive terrain in Nebraska to the Texas Gulf Coast.
Obama recently delayed a decision on granting a permit for the pipeline until after the 2012 election.
The payroll tax legislation was one of three major bills that Congress was struggling to finish before adjourning for the year, and by far the most contentious.
A measure covering Pentagon spending was ready for passage, and, separately, negotiators said they were close to a deal on a $1 trillion measure to fund most government agencies through the end of the budget year.
That deal was in limbo, though, with Obama and congressional Democrats using it as leverage to keep House Republicans at the table negotiating a final compromise on the tax and unemployment measure.
It was the final showdown of a year that once brought the government to the brink of a shutdown and also pushed the Treasury to the cusp of a first-ever default.
Those confrontations produced last-minute compromises.
This time, leaders in both parties stressed a desire to renew the unemployment tax cuts and jobless benefits that are at the core of Obama’s jobs program.
Obama and most Democrats favor an income surtax on million-dollar earners to pay for extending the Social Security tax cut, but Republicans oppose that, saying it is a violation of their pledge not to raise taxes.
Instead, the House bill called for a one-year pay freeze and higher pension costs for federal workers, higher Medicare costs for seniors over $80,000 in income as well as other items to cover the cost.
Obama’s veto message focused on economic issues – which unite Democrats – accusing Republicans of putting the burden of paying for the legislation on working families “while giving a free pass to the wealthiest and to big corporations by protecting their loopholes and subsidies.”
Republicans drew attention at every turn to the pipeline, which is backed by some lawmakers in the president’s party as well as by the blue-collar unions representing plumbers, pipefitters, electricians, carpenters and construction workers.
Estimates of the jobs that would be produced by pipeline construction vary widely but are in the thousands in a time of high national unemployment. The State Department estimated the total at about 6,000; project manager TransCanada put it at 20,000 directly, and Rep. Dave Camp, R-Mich., said in debate on the House floor it was more than 100,000.
Democrats aimed their criticism at the bill’s impact on those who would bear the cost.
Rep. Sander Levin of Michigan, the party’s senior lawmaker on the Ways and Means Committee, displayed a placard that said “Seniors sacrifice: $31 billion. Federal workers sacrifice: $40 billion. Unemployed Americans sacrifice: $11 billion. Millionaires and billionaires sacrifice: $0.”
The bill also “spends $300 million on a special interest provision that helps a handful of specialty hospitals while cutting billions from community hospitals,” he said, referring to a part of the measure that will raise federal Medicare payments to doctor-owned hospitals.
Rep. Eliot Engel, a New York Democrat, said he had an open mind about the pipeline but also said it had no legitimate role in the payroll tax bill.
Republicans argued otherwise.
Rep. Fred Upton of Michigan, the chairman of the House Energy and Commerce Committee, said the pipeline’s construction would allow Canada to send one million barrels of oil a day into the United States, lessening domestic reliance on imports.
He said Canadian development of a pipeline is a certainty, and lawmakers needed to decide whether they wanted it to end up in the United States or “someplace like China.”
As drafted by Republicans, the measure also would block the Environmental Protection Agency from issuing planned rules to limit toxic emissions from industrial boilers. Republicans said the regulation would be a job killer, and 41 Democrats supported an earlier stand-alone measure to prevent the administration from acting.
Other provisions to cover the cost of the legislation would repeal billions from the health care bill that Obama won from Congress last year when both the House and Senate were under Democratic control and from boosting fees that Fannie Mae and Freddie Mac charge banks for backing their mortgages.
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Comments (99)
fatjack
Posted on December 13, 2011 at 11:19pm“The Social Security payroll tax cuts approved a year ago to help stimulate the economy would be extended through 2012”
At the expense of Social Security
http://cnsnews.com/news/article/social-security-trustee-obamas-tax-plan-could-end-social-security-we-know-it
Report Post »TheCoffinMaker
Posted on December 13, 2011 at 11:51pmBoehner is a lush. They have to yank the bottle of Merlot and the putter from his grip two hours prior any photo shoot in hopes for him to regain his manhood.
His shrink recommends that he wear a pink or red tie to pacify him during his stay at the podium so as not to, inadvertently, reach for the flask he stuffs in his polka-dot undies.
This country is doomed.
Report Post »lukerw
Posted on December 14, 2011 at 6:36amExtending Tax Cuts… that Pay for Pensions… can only Increase the Debt… given that these funds pay for the Existing Retired! Robin Hood is robbing Peter to pay Paul!
This is Bad… Finance Management!
Report Post »Ivey123
Posted on December 14, 2011 at 9:15amI’m amazed at how things get done in our federal government. Isn’t that how EXTORTION works??
Report Post »coindexter
Posted on December 14, 2011 at 1:00pmpictures of *****…i mean boehner, make me feel ill. D.C. needs to be dismantled in the most vicious of ways. tear it down and rebuild based on the constitution. take away the $$$ and centralized power…kick out the czars and the lobbyists…and let’s get on with being America again.
Report Post »coindexter
Posted on December 14, 2011 at 1:04pmENCINOM…you wake up! the DEM’s are the other party of the rich…you think they really care about your poor @$$? the two party system has failed…everything goes to the highest bidder.
Report Post »Jim in Houston
Posted on December 15, 2011 at 3:33pmencinom: Go back to sleep, we aren’t interested in your inane babbling.
Report Post »Mess23
Posted on December 13, 2011 at 10:26pmHarry will do what his masters say, but I hope the rest of the Dems don’t listen to this anti-American boy leading the Senate.
Congress, good job, now go home.
Report Post »foxrocks
Posted on December 13, 2011 at 10:21pmLets see if comrade obama vetos a bill that would increase jobs, and extend the tax cuts…..poor baby would have to cut back on all his vacations, air force 1 expense and security for family boondoggle to hawaii………..he doesn’t want to pass this because he gets political money from the greenies, and the oil companies right now……this guy cares less about jobs….all about me me me me me me. ONE AND DONE!!!!!!!!!!!
Report Post »jnobfan
Posted on December 14, 2011 at 8:19amAll you union workers take notice!!
Report Post »Your union leaders and your President are putting the dirty hippee tree-huggers belief that you can‘t build a pipeline that doesn’t leak ahead of your mortgage payment and beer money.
They are convinced that you are sheep who take what you are given like good little comrads.
Go ahead – do nothing. Don‘t demand your union leaders tell Obama if he vetos a shovel ready 10 year job for union workers he doesn’t get a dime of your dues to get re-elected.
Carl Marx had a name for you guys “Useful idiots” My word begins with a P
Jim in Houston
Posted on December 15, 2011 at 3:36pmjnobfan: O’Blamer is caught in his zipper on this one. He is going to get hurt no matter which way he pulls. If he vetoes it he looses the unions. If he signs it he looses the tree huggers. This couldn’t be happening to a more deserving person.
Report Post »Messianic Kitty
Posted on December 13, 2011 at 10:15pmI agree WELOVETHEUSA!! The Keystone Pipeline WILL give us MORE JOBS. We need to kick all the lefties and rhinos out of the govt. period! Look up Rick Perry he is all for this Yes we may need to pay for the pipeline BUT it is so much better to get oil from our friends in Canada than our evil enemies in the east! Don‘t forget we’ll get so many more jobs!
Report Post »MarsBarsTru7
Posted on December 13, 2011 at 10:02pmWould someone please explain to me why American oil companies have to rely on federal legislation for them to do something like build a pipeline. How is it that a business in this country has to rely on government authorization to do something that is fundamental to its industry? Is this pipeline getting federal funding? If so, I’m unfathomably frustrated right now.
Is there anyone around here more knowledgeable than myself on this? Please fill me in.
Report Post »chubster
Posted on December 13, 2011 at 11:32pmIt may see some federal funding however, even if it got no federal funding it would still need federal approval because it A: originates in a foreign country B: passes through several states and C: passes over federally owned land.
Report Post »bigdeg
Posted on December 13, 2011 at 11:51pmdon’t forget …up till now the biggest roadblock to many thousand jobs is the EPA!!! Even why our own state dept. said that there would be “no significant impact” in the pipeline, the EPA is “unreasonable” on its “great harm to the aquifer”, so the contractor agreed to spend more money designing a longer pipeline around the area, and the EPA still thinks its really , REALLY, a Bad idea!
Report Post »rush_is_right
Posted on December 13, 2011 at 9:57pmdon’t worry the republicans will fold like a wet blanket, they’re gutless
boehner is a joke.
Report Post »Citizen1
Posted on December 13, 2011 at 9:55pmIsn’t the Excel Pipeline being paid for by PRIVATE MONEY???
Political Extorsion to favor a party for Influence Peddling.
This is TYRANNY at its worst….
Report Post »bhohater
Posted on December 13, 2011 at 10:23pmAnything the Republicans propose is DOA and they know it. Congress is completely deadlocked and it’s not about to change. They should all just go home and stop blowing smoke up our a–es.
Report Post »ULYSSESG
Posted on December 13, 2011 at 9:49pmBoth houses are screwing the USA, they are JUNK, ALONG WITH THIS PRESIDENT.
Report Post »VoteRightDammit
Posted on December 13, 2011 at 9:40pmHow DARE those evil GOP fanatic extremists pass a bill creating 20K jobs. The nerve!
Oh – and how DARE the evil GOP fanatic extremists tie one issue to a different issue. The good, freedom-loving, honest Donks would NEVER do such a vile, hateful thing.
Those GOPers are all RACISTS, H8tres, homophobes, and CHRISTIANS (ewwwwwwwwwwww!) intent on murdering all elderly women and blue collar workers.
Report Post »FANGS
Posted on December 13, 2011 at 9:38pmObama will then someday blame the Republicans for making the SS go broke.
Report Post »ULYSSESG
Posted on December 13, 2011 at 9:37pmmbriz is a clown (PLANT), stop with you crap *******. got a 223 round with your name on it.
Report Post »Sounds like mbriz might have been doing some camping in some parks over the past months.
EVERYONE WITH A BRAIN REPORT mbriz
Exrepublisheep
Posted on December 13, 2011 at 9:36pmWhy do we need a pipeline to Texas? There are plenty of states on the canadian border who could use all those jobs.
Report Post »VoteRightDammit
Posted on December 13, 2011 at 9:42pmBilbo
If the pipeline were not built (refineries on the Canadian border), or if a dramatically shorter version were built — THE DAMNED JOBS ASSOCIATED WITH THE PIPELINE CONSTRUCTION PROJECT WOULD NEVER HAPPEN.
Geeze. This is not rocket science.
Report Post »saranda
Posted on December 13, 2011 at 10:09pmNot enough refinery capacity near the Canadian border and not any “job creators” who will build the refineries. Besides then you just have to move the refined product and that increases costs.
Report Post »Jim in Houston
Posted on December 15, 2011 at 3:44pmEX: Do you have any idea where the refineries are located? They are NOT along the Canadian border, so they would have to be built. We haven’t built a new refinery in this country for nearly 50 years. Do you honestly believe that the EPA and others would give anyone a permit to build a refinery? I think you must be a terminally stupid libaturd.
Report Post »AJAYW
Posted on December 13, 2011 at 9:35pmSure would like to know who the 14 Republicans opposed it are
Report Post »ULYSSESG
Posted on December 13, 2011 at 9:32pmmbriz….REALLY, what do you suggest then.We are so awaiting your wisdom.Please tell us what to watch..
Report Post »FANGS
Posted on December 13, 2011 at 9:27pmThank You Republicans. Vote for Jobs Vote Republican !!!!
Report Post »roach
Posted on December 13, 2011 at 9:08pmWhy is it that a payroll tax bill (along with many other things), and a pipeline bill tied together. this makes no sense, earmarks need to go.
Report Post »VoteRightDammit
Posted on December 13, 2011 at 9:44pmYeah, those evil GOPers. Where on earth did they ever get the idea to do some crazy thing like THAT?
Report Post »Jim in Houston
Posted on December 15, 2011 at 3:53pmROACH: I am turning on the lights, so scurry back under the sink. The pipeline was attached as a means of paying for this assault on the Social Security revenue source. Let me see if I can explain this in terms even you can understand. First,the pipeline is not an ear mark because it will be paid by private NOT government funds. Are you with me so far? Second, since it will create jobs that will do two things (1) Reduce unemployment and the cost of paying for unemployment and (2) Those who get the jobs will pay income tax, thus increasing the money coming into the government while reducing the money going out. Hopefully that was a simple enough explanation for evan a liberal to understand.
Report Post »right
Posted on December 13, 2011 at 8:43pmYour move Harry.. Do you have nerve enough to let it go up for a vote?
Report Post »On The Bayou
Posted on December 13, 2011 at 8:56pmBarack Obama doesn`t want anyone working here people, don`t expect anything different than what you`ve seen already.
Report Post »packsack54
Posted on December 13, 2011 at 8:38pmWhy did they not include the drilling on the gulf of Mexico and Florida. Then we would be less dependent on other countries, esp the Mideast AH. Like a good neighbor Canada is here to help. Scr-w China.
Report Post »Darmok and Jalad at Tanagra
Posted on December 13, 2011 at 8:47pmIf we could just open up Al Sharptons head for drilling, our oil problems would be solved overnight.
Report Post »iblvingd
Posted on December 13, 2011 at 8:30pmWhat a JOKE social security tax cuts well lets see we were individually paying 6.2% on social security before and then they cut it to 4.5% whoopee that means the government was giving us a whole 1.7% gift of less tax. To put it in better perspective if you made a $1000.00 generous Obama would not make you pay $17 into social security whoopee! Yeah then take it from the already broke Social Security and then complain its broke too. If you made 30K a yr that would give you a whooping $42.50 a month. Obama that wouldn’t buy you a cheap bottle of booze now would it?
Oh my, what a pathetic government we have. I am very sick of the PORK bills! Watch the Cronies slide their dirty bills in on the bacon grease! Smoke & mirrors!
We need to get rid of these Cronies and get some new blood in their fast! If the congressman in your states have been in office for more than two terms VOTE OUT the ones you can in 2013!
Report Post »packsack54
Posted on December 13, 2011 at 8:44pmHeck congress already took 3 trillion from social security, which we do not have the money to put back into the trust fund. Now they just cut the amount being paid into the fund to help it stay from going broke. Oh that right the USA is already broke but congress still can not see the writing on the wall. LOL
Report Post »sWampy
Posted on December 13, 2011 at 8:50pmThat $42 a month will come out of what you are contributing to SS, so when you get ready to retire, you will get less.
Report Post »ddg7
Posted on December 13, 2011 at 8:30pmI‘m so sick and tired of hearing this ’fair share’ argument. Why won‘t the democrats just repeat the communists tenet of ’From each according to his ability, to each according to his needs!’. Commie ba$tard$!
Report Post »CatB
Posted on December 13, 2011 at 8:57pmAmen!
Report Post »CLG 4
Posted on December 14, 2011 at 10:51amRight on brother, also I served on DDG 11
Report Post »Wdawg
Posted on December 13, 2011 at 8:29pmWho do the republicans represent? Doesn’t seem like we the people, that is for sure!
Report Post »iblvingd
Posted on December 13, 2011 at 8:33pmMost of our congressman DEM or REP work for themselves they do NOT work for the people. They work for the extra millions in their pocket from the lobbyists and insider trading.
Report Post »CatB
Posted on December 13, 2011 at 8:58pmWhy? .. because they included a pipeline into something that the Dems already say they want … You should want that pipeline also .. especially if the middle east shuts off the oil!
Report Post »welovetheUSA
Posted on December 13, 2011 at 8:27pmMost people understand, a payroll tax that pays or social security…..and for people to sit on their rear ends,does not create jobs, period. The pipeline will create over 200,000 jobs….Now. 2012 folks…get the democrates out of our White House.
Report Post »mbriz
Posted on December 13, 2011 at 8:55pmStop watching Fox News, they don’t inform. The pipeline will not create anything near 200k jobs.
Report Post »marion
Posted on December 14, 2011 at 2:15amMBRIZ, if it makes one job it will be making more than a veto will make. They are union jobs, so consider 5,000 people would do the job in a year, 200,000 union jobs will be the cost of the job. ONe also has to consider all the jobs retained for maintenance and depot locations to get the oil out of the pipeline, and then all the support jobs near those locations which would be added, like one extra fast food restaurant, or a 7-Eleven, a portapotty along the pipeline. Figure out how many jobs there are to maintain the Alaska pipeline and go from there. Whatever it is, remember, more than a Veto.
Report Post »Darmok and Jalad at Tanagra
Posted on December 13, 2011 at 8:22pmThe put the pipeline in the bill to lube it up for us, Congress is just trying to be compasionate. By the way, your shoelaces are undone, bend over.
Report Post »godhatesacoward
Posted on December 13, 2011 at 8:22pmAll I can say is, Nutless cowards!
Report Post »godhatesacoward
Posted on December 13, 2011 at 8:28pmLast post,return to sender!
Report Post »VoteRightDammit
Posted on December 13, 2011 at 9:46pmps: you are wrong. God does NOT hate you.
Report Post »TRONINTHEMORNING
Posted on December 13, 2011 at 8:16pmAnd did you hear comrade carney’s statement following? Levin read it tonite and it just makes one want to spontaniously combust.
Report Post »MidWestMom
Posted on December 13, 2011 at 8:31pmCarney opens his mouth…I mute the TV. If I hear him I tend to throw things at the screen. I can’t afford to buy a new TV.
Report Post »Darmok and Jalad at Tanagra
Posted on December 13, 2011 at 8:35pmIt only makes sense that The Circus Clown Obama went out and got a Carney to pitch and sell his act.
Report Post »mbriz
Posted on December 13, 2011 at 8:57pmLevin is just another hateful clown like beck.
Report Post »CatB
Posted on December 13, 2011 at 9:00pm@TRON .. I heard it .. then I went into a meeting with a speaker regarding LIBERTY. That is what we need to restore in the country .. Liberty!
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