Senate Passes Two-Month Payroll Tax Cut, Keystone Oil Pipeline Provision
- Posted on December 17, 2011 at 9:55am by
Madeleine Morgenstern
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WASHINGTON (AP) — Senators racing for the exits after a year of bitter battles passed legislation Saturday that would extend a Social Security payroll tax cut and jobless benefits for just two months, setting the stage for the next fight until February.
While a partial victory for President Barack Obama’s year-end jobs agenda, the measure awaiting House approval next week contains a provision demanded by Republicans to pressure the White House into approving construction of a 1,700-mile Canada-to-Texas Keystone XL oil pipeline that promises thousands of jobs.
Democratic and GOP leaders option for the short-term extension after failing to agree on big enough spending cuts to pay for a full-year renewal of the payroll tax cut. The 2 percentage point tax cut affects 160 million taxpayers. The weekly jobless payments average about $300 for millions of people who have been out of work for six months or more.
The measure was approved by an 89-10 vote during a Saturday session.
The Senate also passed a $1 trillion-plus catchall spending measure setting the day-to-day budgets of 10 Cabinet agencies. The House cleared the spending bill Friday, and the Senate approved it 67-32.
In a statement, White House communications director Dan Pfeiffer indicated Obama would sign the two-month extension measure, saying it had met his test of “preventing a tax increase on 160 million hardworking Americans” and avoiding damage to the economy recovery.
The statement made no mention of the pipeline.
The legislation, would require the president to grant a permit, but allows Obama to opt not to do so if he determines that the pipeline is “not in the national interest.” One senior administration official said the president would almost certainly refuse to grant a permit. The official was not authorized to speak publicly.
The developments came a few hours after the White House publicly backed away from Obama’s threat to veto any bill that linked the payroll tax cut extension with a Republican demand for a speedy decision on the 1,700-mile Keystone XL oil pipeline proposed from Canada to Texas Gulf Coast refineries.
Obama said on Dec. 7 that “any effort to try to tie Keystone to the payroll tax cut I will reject. So everybody should be on notice.”
Obama recently announced he was postponing a decision until after the 2012 elections on the much-studied proposal. Environmentalists oppose the project, but several unions support it, and the legislation puts the president in the uncomfortable position of having to choose between customary political allies.
Republican senators put the price of the two-month package at between $30 billion and $40 billion said the cost would be covered by raising fees on new mortgages backed by Fannie Mae and Freddie Mac.
The fees, drawn from a Treasury Department housing finance market reform plan, would add several thousand dollars to the 30-year cost of home loans guaranteed by mortgage giants Fannie Mae Freddie and Freddie Mac and the Federal Housing Administration.
A worker making a $100,000 salary would reap a tax cut of about $330 through the short-term payroll tax extension.
A version of the fee that circulated overnight would effectively raise the interest rate on a mortgage by one-tenth of one percentage point, but the still-undetermined final version – awaiting analysis from the Congressional Budget Office – was expected to be lower.
The measure also provides a 60-day reprieve from a scheduled 27 percent cut in the fees paid to doctors who treat Medicare patients.
Officials said that in private talks, the two sides had hoped to reach agreement on the full one-year extension of the payroll tax cut and unemployment benefits that Obama had made the centerpiece of the jobs program he submitted to Congress last fall.
Those efforts failed when the two sides could not agree on enough offsetting cuts to blunt the measure’s impact on the debt.
The failure tees up the issue again for early next year, but it won’t get any easier to agree on spending cuts. The
“We’ll be back discussing the same issues in a couple of months, but from our point of view, we think the keystone pipeline is a very important job-creating measure in the private sector that doesn’t cost the government a penny,” said Sen. Mitch McConnell of Kentucky, the Republican leader.
Neither House Speaker John Boehner, R-Ohio, nor his aides participated in the negotiations, although McConnell said he was optimistic about the measure’s chances for final approval. The payroll tax cut is unpopular in GOP ranks and another vote in two month could present a headache for GOP leaders.
The State Department, in an analysis released this summer, said the pipeline project would create up to 6,000 jobs during construction, while developer TransCanada put the total at 20,000 in direct employment.
The 1,700-mile pipeline would carry oil from western Canada to Texas Gulf Coast refineries, passing through Montana, South Dakota, Nebraska, Kansas and Oklahoma.
The spending bill would lock in cuts that conservative Republicans won from the White House and Democrats earlier in the year.
Republicans also won their fight to block new federal regulations for light bulb energy efficiency, coal dust in mines and clean water permits for construction of timber roads.
The White House turned back GOP attempts to block limits on greenhouse gases, mountaintop removal mining and hazardous emissions from utility plants, industrial boilers and cement kilns.
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Comments (104)
Bill Burns
Posted on December 17, 2011 at 11:57amO has got his teat in a wringer this time after vowing to VETO any Keystone provision.
Report Post »NOBAMA201258
Posted on December 17, 2011 at 12:51pmWhat a gutless weasel,wanting to wait until after the election, I guess he wants to see which group has the most voters the unions or the tree-huggers, I’m all for conservation but not at the cost of jobs in this economy, and obama’s campaign is going to spend over 1 billion dollars to get this socialist re-elected ? BO must go! Anyone that would give this clown 4 more years to wreck our nation is an idiot!
Report Post »tifosa
Posted on December 17, 2011 at 1:14pmBill, did you read the “provision?” :^)
Report Post »YOUR NOT GETTING MY GUNS
Posted on December 17, 2011 at 4:17pmHe doesn’t care one way or another. He’ll say the republicans forced hin into it and then have the EPA sew it up so tight it will never see the light of day. At the end he’ll be happy he got another new tax.
Report Post »YOUR NOT GETTING MY GUNS
Posted on December 17, 2011 at 4:25pm@nobama
Report Post »This was win win for him. You can bet even though it’s on his desk it will go nowhere.
Snowleopard {gallery of cat folks}
Posted on December 17, 2011 at 11:54amAm I reading this right in these matters…
The Keystone pipe can still be killed by Mr Obama’s refusing to issue the permit.
The payroll tax cut continues while fees in home loans via Freddie/Fannie increase…
Report Post »Fees increases = silent tax hike via regulations.
Bill Burns
Posted on December 17, 2011 at 11:59amO-blame-O will be forced to sign this one but he’ll have egg and humble pie all over his face.
Report Post »adastra2005
Posted on December 17, 2011 at 1:31pmYou ARE reading it correctly. The bill only requires that Obama make a yes/no decision on the pipeline. It does not require him to approve the pipeline. It had been studied for 3 years and approved by State Dept. While waiting for Obama’s approval, the eco nuts protested and threatened to pull their political support … so he wanted to avoid making a decision. A convenient dodge was determined … State Department would go back on their initial approval and instead indicate they needed another 12 – 18 months of study. Thus, all of a sudden the “decision” was out of Obama’s hands. State Department (Hilly) provided political cover for our “leader”. What a scam.
Report Post »mrtinbender
Posted on December 17, 2011 at 2:34pmyou are reading it correct o can still say no to the pipeline
Report Post »Bill Burns
Posted on December 17, 2011 at 11:54amHere’s where the FUN begins,,,
Report Post ».
O has got his teat in a wringer this time after vowing to VETO any Keystone provision.
mrtinbender
Posted on December 17, 2011 at 2:36pmwhen you stand for absoluely nothing you can never get it in a wringer
Report Post »lovemynation
Posted on December 17, 2011 at 11:46amHe’ll sign and take credit for doing so, for the middle class. I notice, though, it didn’t take them long to get the bill to fund “gov’t” done and get out the door for their Holidays. As they fly and take a limo home, or a private jet, and sit around the Christmas tree looking at the big heap of expensive gifts and the table burdened with food and yummies, how much thought do you think any of them will give the many who are waiting for jobs? We don’t want unemployment checks and a two month holiday of taxes, while Obama and others try to bombard us with whatever it takes to get our vote and divide our nation even more. Im sick of all of it. Our own gov’t holds us hostage while they and their media and pundits spin the lines and tales, hoping we bite. Its obvious that we mean little and our tax revenue is their only care. Meanwhile families go without, children go without, and our nation cries out in fear. When we will stand up for her and our own? Now that the EPA has declared breathing hazardous to our environment, soon we won’t have the breath it takes to protest. Or the nation to protest for. What will we tell our children when they ask us why we didn‘t fight for their futures against the tyranny called DC and the gov’t who reside there in a bubble? Why didn’t we fight for them to have the same nation that we had growing up? And why did we let our elected ignore the needs of the nation and citizens, to do as they please to get re-elected?
Report Post »Stoic one
Posted on December 17, 2011 at 12:02pmthe potus is a GLOBAL SOCIALIST. If you look at his policies from that perspective then you understand the the USA is the top 5% in the world. He wants to “Share the wealth” with the entire world, not just here in America.
Report Post »hauschild
Posted on December 17, 2011 at 1:14pmUnfortunately, there aren’t enough people that truly care for a change to occur. You didn’t think traditional America was going to last forever, did you? What, with the steady and intentioned brainwashing of the masses over the past 40 years???
Enjoy what you’ve currently got and game-plan. That’s all you can really do at this point.
Report Post »Truth Wins Every Time
Posted on December 17, 2011 at 11:41amObama will sign this bill and then will use this……..The legislation, would require the president to grant a permit, but allows Obama to opt not to do so if he determines that the pipeline is “not in the national interest.” One senior administration official said the president would almost certainly refuse to grant a permit. The official was not authorized to speak publicly.
So he gets what he wants. WHy would the Repubs even put this in the bill if not to help Obama.
Report Post »Snowleopard {gallery of cat folks}
Posted on December 17, 2011 at 11:56amMr Obama has gotten what he wants:
A way to declare political victory.
Report Post »A way to kill the pipeline clean.
A new tax hike selective via the fees increase (hidden taxations) on the home loans.
TRILO
Posted on December 17, 2011 at 11:32amSo let me get this straight… the Republicans are going to allow social security to go further in the hole, extend unemployment benefits past 99 weeks, not get the pipeline because they gave BHO an out and people who buy new houses in the worst housing marketand economy for decades are going to pay for the tax cut extension and unemployment benefits? I am also certain Senate republicans will pass the 1200 page $1 trillion omnibus spending bill just like their loser partners in crime in the house did. Wow, if the Republicans get all three branches of government in 2012 with Republicans like these I can not wait to see what spending will happen and what other freedoms we lose beyond what was taken from us with the passage of the NDAA bill and these recent spending bills. Their track record over the past week has such a wonder Christmas present to the American people.
I am now convinced that there is not much difference between Democrats and Republicans. The only difference is Democrats usually say what they mean and vote accordingly. Republicans on the other hand feed the American sheeple their conservative rhetoric then vote opposite of what they say. I am done with the Republican party they are all LIARS, CHEATS and LOSERS!!!
Report Post »joe conservative
Posted on December 17, 2011 at 11:43amDon’t let the door hit you on the way out. Anyone who says that the Democrats are the party that is honest, was never really a conservative anyways. So long.
Report Post »http://www.youtube.com/watch?v=AdTJR_OYnNg
Stoic one
Posted on December 17, 2011 at 12:06pmNO! the democraps are not honest nor are they truthful. Where did you get that Idea????
The RINO’s are less dishonest that those democraps.
Report Post »FreedomPurveyor
Posted on December 17, 2011 at 12:13pmTrilo, you have to understand that the democrat strategy is to not let anything pass and blame it on the Republicans. The only way for the Republicans to counter it is to play ball and get bills through that will pass in the Democrat controlled Senate, and also not get vetoed by PBO. Keep in mind that the Democrats don’t just control the Senate and the White House, they also control the media.
Report Post »mrtinbender
Posted on December 17, 2011 at 2:40pmonce agian demo or repub it is all the ruling class
Report Post »barber2
Posted on December 17, 2011 at 10:54amGONZO: Yes. What ever did happen to that million dollar boondoggle : Ground Force One ? Is Obama still using it for his never-ending campaign tours ??
Report Post »eyestoseeearstohear
Posted on December 17, 2011 at 10:44am“ PASS THIS JOBS BILL” was the message Obama POUNDED for weeks, right?
NOW, that there’s a REAL JOBS BILL & REAL JOBS – ole’ Obie is backing away.
EVERYTHING Obama has said AND done, SINCE HIS UNDESERVING ELECTION,
has been for the benefit of HIS RE-ELECTION, HIS PARTY, HIS BUDDIES OR FOR HIM.
He has NOT been a PRESIDENT OR A PRESIDENT WHO IS FOR THIS COUNTRY!
He has been HYPOCRITICAL in ALL matters – WHILE – carrying the banner of “FAIRNESS”.
HIS LIES ARE COMING HOME TO ROOST – and the GRIPPING WORKS OF HIS OWN HANDS
ARE FINALLY CLASPED AROUND HIS OWN THROAT!
And, I hope he SQUEEZES THE LIFE OUT OF IT!
Report Post »RightInSoManyWays
Posted on December 17, 2011 at 10:37amA provision to pressure Obama?!?! Why do I even vote, they‘re all a bunch of idiots and will never do what’s right. The United States that I love died long before I was even born. We are all getting what we deserve for just coasting along thinking nothing bad can happen to us. RIP USA
Report Post »barber2
Posted on December 17, 2011 at 11:03amWonder what our politicians were fighting about when the Japanese planes hit Pearl Harbor ?
Report Post »spankadonkey
Posted on December 17, 2011 at 11:12am“Pressure” Obummer – Like please, please, pretty please – give our drone back. Great job Senate Republicans – you gutless wonders.
Report Post »Americanbeliever
Posted on December 17, 2011 at 10:32amWow Woo Hoo! This and a TRILLION dollar spending package all for Christmas!! I would rather have coal Thank You.
Report Post »Gonzo
Posted on December 17, 2011 at 10:27amOh, he will sign it…because he really doesn’t care that much about the environmentalists or the environment for that matter. (not that the pipeline will affect the environment) All he cares about is his re election and he will throw anyone who stands in the way of another four years under the big ole’ Obama bus.
Report Post »NOBALONEY
Posted on December 17, 2011 at 10:27amXL pipeline provision is a joke! Republicans Caved! Instead of jobs from pipeline. Nancy Pelosi repeated that Unemployment checks create jobs. “If you repeat a lie often enough, it becomes the truth” Joseph Goebbels
Report Post »barber2
Posted on December 17, 2011 at 11:01amAgree with the Goebbels quote: The exact tactic of the Obama folks: tell a Big Lie ( 99% / 1% ) and then keep repeating it. That is the way they run the government…Lie..Human Mic…Lie..MSM…Lie..etc. Based on the Alinski community organizational techniques which were really based on the belief that the average voter was a dumb—.! All of this phony, idealistic sounding “ Hope and Change” which is really based on the Left’s elitist arrogance that they, the leaders, know what the stupid little people really need.
Report Post »Bill Burns
Posted on December 17, 2011 at 12:01pmIndeed Obama will be forced to cave in once again. – The guy could screw up a rock fight.
Report Post »Mesaba67
Posted on December 17, 2011 at 10:27amOne of my customers is a contractor who will be earning his living from this project. Hopefully he will spend some of his profits with me and others in our town. This is the real way to spread will.
Report Post »bhohater
Posted on December 17, 2011 at 10:54amObummer has promised to veto the bill if it includes the pipeline. If he does the republicans should do what Newt suggested and keep sending it to him right up to the election. I‘m betting he’ll cave and sign it.
Report Post »CatB
Posted on December 17, 2011 at 11:22amI agree ..send it DAILY .. make him veto JOBS and energy … then when they cut off the middle east oil we will know exactly who to blame for the $10 a gallon gas he wants.
Report Post »flyoverbob
Posted on December 17, 2011 at 10:27amSame old story,get face time on the media promoting yourself,then give in to what the progressives want.But the real story is a lot of the repubs are progressives also.A provision to pressure Obama,REALLY,that will show them.
Report Post »I pay Boener no heed any longer,he needs to go.But of course he wont,the sheep will follow.We are getting what we deserve.
spfoam1
Posted on December 17, 2011 at 10:26amThe emocrats have been extending tax cuts on a short term basis for a long time. They know full well that a short term tax cut will net little or no positive result. This has been done repeatedly since the democrats took power in 2006, to create the illusion over time that tax cuts don’t increase revenue and stimulate the economy. Democrats are nefarious deceptive traitors.
Report Post »landman1
Posted on December 17, 2011 at 10:23amAny way you slice this it’s a defeat for the POTUS. He can’t move either way, sign it or veto it, without double crossing his base. Unions on the one side and enviromentalists on the other. He almost has to sign this thing . The whole country will be after his a-s-s if he votes against jobs and a swipe at energy independence. Isn’t that what the whole thing is about? With Canada offering the US this oil or alternativly selling the oil to China, he has no choice. The enviromental whackos will just have to be mad. Anyway, he figures, and correctly so, who are they gonna vote for…Romney? And by the way…great job Boehner.
Report Post »tifosa
Posted on December 17, 2011 at 11:20amThe KXLoil pipeline has no effect on U.S “energy independence.” This will strengthen/lengthen the Canadian tarsands producers ability to undercut U.S. domestic oil producers, as they already do. Energy independence is achieved by reducing the addiction.
Report Post »landman1
Posted on December 17, 2011 at 11:38amWith this pipeline we could acheive a little independence from middle eastern oil by purchasing from a friendly neighbor. It has no consequence to our thirst for oil. I do know that windmills won’t satisfy our need for energy.
I am a beleiver that man has been burning fossil fuels ever since he first encountered fire and will be doing so for a long time to come. I see nothing wrong with using fossil fuels to continue to further this countries greatness. If the Canadiens sell this oil to China and they burn it does that make the Earth greener or do you have enough sense to understand that if it’s used here or used in China that it will be burned in the same atmosphere? Oil, coal and natural gas… all should be utilized by this country.
Report Post »rationallyurs
Posted on December 17, 2011 at 10:23amthis is what happens with a thug for semi-president
Report Post »nt
Posted on December 17, 2011 at 10:22amIf Barry kills the pipeline…how can he say he wants to put people to work?
Report Post »progressiveslayer
Posted on December 17, 2011 at 10:21amThere’s many reasons why Barry should be fired and this pipeline deal is a major one,I understand the Marxist’s view,he has to keep oil prices high to force us to buy POS so called electric cars.Barry has got to go I don’t care who gets the nomination.
Report Post »CatB
Posted on December 17, 2011 at 11:23amI agree .. he is the biggest threat to our security.
Report Post »tifosa
Posted on December 17, 2011 at 10:17amHe’s going to sign it. Pay attention.
Report Post »FANGS
Posted on December 17, 2011 at 10:15amWhen is America going to draw up arms and Throw all of these usless traitors out. Cant wait til one of the leftist fools shoots a republican. America will open up on a biblical scale. It will not stop until every last communist is dead
Report Post »SLEUTH
Posted on December 17, 2011 at 10:07amIf he signs it into law or not, you can be sure he will find an excuse as to why he did or didn’t. Either way he would be blaming others.
Report Post »barber2
Posted on December 17, 2011 at 10:03amAh, government by duct tape and short term patches for long term problems. How about a real budget, Mr. President ? So tired of all of the gamesmanship , smoke and mirrors teleprompter campaigning , and the Media Manipulation. Too bad you didn’t make any “ campaign promises ” in 2008 about really running the government well . Campaigning seems to be the only thing you do well…and constantly…
Report Post »Darla_K
Posted on December 17, 2011 at 10:57amHe lies good. :)
Report Post »alanvz43
Posted on December 17, 2011 at 9:59amOnce again they kick the can down the road. Our politicians are un able to do anything positive Long term
Report Post »tifosa
Posted on December 17, 2011 at 10:22amcorrection: “unable to do something positive long term FOR ANYONE WHO’S NOT IN THE TOP 1%.”
Report Post »barber2
Posted on December 17, 2011 at 10:52amTIF: More of your 99% baloney !
Report Post »oldironsides
Posted on December 17, 2011 at 11:17amtifosa – have to agree – the thing they must do is STOP DOING! – after the government takes my money for … fed. income tax, soc security and medicare, state income tax, property tax on my house, car tax, gas tax, sales tax, business personal property tax, and the many fees for licenses, registrations etc. for redistribution, they really put me in a hole – the payroll tax i don’t even get being self employed – the greatest thing they can do is stop taking my hard earned money
Report Post »Gonzo
Posted on December 17, 2011 at 9:58amOh boy! A two month payroll tax cut will really get the ball rolling! Yahoo…happy days are here again!
Report Post »DAMTEXAN
Posted on December 17, 2011 at 10:12amBut The WICKED WITCH of the WEST says it will create 600,000 jobs and she knows.
Report Post »Gonzo
Posted on December 17, 2011 at 10:29amThe only jobs she creates are for the Botox manufacturing industry.
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