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December 20, 2011 in Nation/World
House GOP rejects 2-month payroll tax cut
WASHINGTON — The House today rejected a plan backed by President Barack Obama that would have extended a 2-percent payroll tax cut for two months and bought time for talks on a full-year renewal.
Republicans controlling the chamber are instead demanding immediate negotiations with the Senate on a year-long plan.
If Congress doesn’t pass a bill by the end of the year, payroll taxes will go up for 160 million workers on Jan. 1. Almost 2 million people could lose unemployment benefits in January as well.
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.
The 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, along with 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.
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.”
© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Stocks plummet as outlook in Europe dims 
Shadedmuse on December 20 at 11:41 a.m.
Wll looks like the Two face tea-bagger party are the party of tax increase. thanks for the TAZ hike Tea-baggers, now if you guys would just shut up and go Away and never come back.
Dazzeetrader11 on December 20 at 11:45 a.m.
Dems just lost 20,000 beginning jobs on the Keystone pipeline. SO much for lowering unemployment.
R’s lost the political battle on this one…thanks to the media.
detroitdude on December 20 at 11:50 a.m.
The party of hypocrisy just keeps trucking along, wasn’t Boehner over the summer wailing about how there was absolutely no way he would raise taxes? I guess he’s willing to raise them as long as it doesn’t amount to a hike on his millionaire and billionaire masters.
20,000 jobs? No, more like 2500-3000, but we know facts and data aren’t your strong suit.
johnclarke on December 20 at 11:53 a.m.
First of all, Duh-aisy the provision in the bill was simply to force and early provision on the Keystone pipeline. Second, how did the ‘Dems’ lose 20,000 jobs?
This is the dirtiest source of transportation fuel known to man, and they want to build a pipe to move it to Texas? What genius came up with that plan ? This is purely profit/political, and it’s backed by the Koch Brothers. Enough said.
schleufer on December 20 at 12:00 p.m.
the calls i have made calls to some of our elected asking what is the intent of this pipeline and so far it seems to be somewhere between exporting oil and domestic production. it appears texas has greater production capability than ferndale so goes the pipeline 1700 miles across this country instead of a few hundred from alberta to ferndale. it just cant be that simple. my distrust of everything including the lack of transparency on our elected peoples web sites that BP is involved. what could go wrong there?
Dazzeetrader11 on December 20 at 12:02 p.m.
No you geniuses in Spokane don’t know enough to argue. 20 -100 K jobs for the pipeline and its ancillary spinoffs from ND to TX.
BUT..no matter…what’s new. Detroit is plain underpowered and Clarkie is likely trying to think from a nother martini night. Clarkie…gren energy is over. It went out the door with Verner the genius.
Green energy must be developed but who pays for it? Best to protect the US with oil based products and work towards green. Can’t happen in one fell swoop..ask Obama the dreamyboy loser. He’s done reall well with it.
We can have a continued payroll tax cut ( it’s not really money that anyone will see since it’s only a boost to SS) and jobs too.Boehner wants both. Obama wants to be elected…he won’t but the Ds seem to have won this rough.
US is getting lost in all this. Obama likes this..he’s done nothing to help…just a partisn president…Dems don’t like him…not the Dem Pols anyway. Remember in November….just ike 2010.
The_Seer on December 20 at 12:05 p.m.
The payroll tax debate continues to dominate news coverage of congressional activity while mainly ignoring the National Defense Authorization Act that contains provisions allowing the indefinite detention of U.S. citizens which permit the Executive branch to selectively deny due process and habeus corpus. As well, it allows the military to conduct his activity within U.S. borders. Obama early stated he would veto such legislation but again, he caved to the Chickenhawks.
http://loyalopposition.blogs.nytimes.com/2011/12/15/the-sound-of-one-president-caving/
crazyivan44 on December 20 at 12:10 p.m.
The Republicans aren’t raising taxes. First of all it is a temporary reprieve, taxes would go back to their original level, that is not raising taxes. Secondly, it is a power play to force a reprieve for all of 2012 instead of just 2 months to “buy time”. They have them over a barrel and can force the issue before the year end, so why drag it out?
Shadedmuse on December 20 at 12:21 p.m.
The Pipeline should go from Alberta Billings where their are alot of oil refineries, the only reason this pipeline is going to houston is so Tanscanada can export the oil over seas. their is a second pipeline that will run across northern BC tothe Pacific and that oil is going to Japan and China. the U.S will not see a drop of this oil in their cars and gas will go to 6-8 dollars a gallon why U.S moterist subsidies big oil to make money on the even more lcrative over seas Oil consumers.
This pipeline needs to be stopped in Montana and the oil refined in Montana and the oil stays in the Pacific Northwest and everyone else can go eat cake and walk or ride a bike.
sean96 on December 20 at 12:21 p.m.
So when the Republicans want to let a tax break expire it is NOT a tax increase. When the Dems want to let the Bush tax cuts expire it is a tax hike on the “job creators”. Now I get it.
Jeffrey_Grey on December 20 at 12:27 p.m.
“Dems just lost 20,000 beginning jobs on the Keystone pipeline.”
Actually, according to TransCanada - the pipeline builder/operator - the actual number of jobs directly created will be more like 2,500 - 4,650. Furthermore, most of those jobs will only exist for 1 to 2 years according to the Canadian National Energy Board’s study of the proposed project.
The inflated job figures come from the so-called “Perryman Study” commissioned by TransCanada. That study’s methods and conclusions have been sharply challenged by independent experts. Indeed, it has been noted that the Perryman Study is so flawed it even included as part of the future benefit from the construction of Keystone XL a segment of the pipeline already built and in full operation.
Last but not least, independent experts have concluded it is possible that construction of Keystone XL could actually cost American jobs in the long run.
(emphasis in the original)http://www.ilr.cornell.edu/globallaborinstitute/research/upload/GLI_KeystoneXL_Reportpdf-2.pdf
crazyivan44 on December 20 at 12:36 p.m.
sean96, the republicans are not attempting to let the tax decrease expire. They are using their leverage to force an extension for 12 months instead of 2 months. Go pick a fight somewhere else.
johnclarke on December 20 at 12:41 p.m.
Duh-aisy, I’m afraid you make no sense. Also, I don’t like martinis.
oneanddone on December 20 at 12:43 p.m.
Geez shadedmuse. You are easily THE most illiterate poster in Spokane. If you’ve got so MUCH to say at least go back to school long enough to sharpen your skills. Otherwise, as you said at the beginning, “…just shut up and go Away and never come back.”
mrd on December 20 at 12:50 p.m.
Games, games, games, get these people out of office and get some in that can actually help the average citizen.
drwonderful on December 20 at 1:06 p.m.
A two month extension is like putting a band aid on a sick elephant.
detroitdude on December 20 at 1:07 p.m.
Thank you Jeffrey Grey for reinforcing what I just said about the number of jobs it would create. @Dazzee: Underpowered? Nah, I just prefer substance over unfounded emotional ranting. You can go peddle your papers elsewhere, your opinions have 0 credibility, you prove that every day you post on here.
johnclarke on December 20 at 1:15 p.m.
Is it possible to have less than zero credibility?
I’m sorry, there is no good business reason for running a pipeline from Canada to Texas. Also, could we get one freakin thing passed without the GOP sticking a gun to everyone’s head? If the stupid pipeline is so awesome, it should pass on it’s own.
WHS on December 20 at 1:46 p.m.
crazyivan44 on December 20 at 12:36 p.m.
sean96, the republicans are not attempting to let the tax decrease expire. They are using their leverage to force an extension for 12 months instead of 2 months. Go pick a fight somewhere else.
And just what is that leverage crazy? Oh yeah, it’s the 99%, the working man, American citizens, that are the “leverage” the teabagger scum are using. Sorry but this to me is just treasonous. While I may or may not agree with the tax cut in the first place, I can certainly see that what the tea party is doing is just wrong, period. These morans are supposed to be representing the people that elected them… Well, they are certainly not listening to the majority, even of their own party.
These tea party republicans are dancing to the tune of a radical minority, the tea party itself. Thanks Republicans, you have really screwed yourself and your country by sponsoring the tea party in the first place. We can only hope that the TP movement becomes nothing more than a footnote in history and doesn’t completely bankrupt the entire country.
WHS
BlondeSquawker on December 20 at 1:57 p.m.
Why do Republicans hate America?
Bruce (aka thatoneguy) on December 20 at 2:27 p.m.
^ They don’t hate all of America, just the part that can’t / won’t make them any money.
monarch on December 20 at 2:42 p.m.
It’s time for Cathy McMorris Rodgers to take her share of the blame when all her constituents are hit with a lower paycheck next month. She’s always up there on the podium with the Republican leadership for the photo opportunities and claims to be a Republican leader. What’s so hard about doing a 2 month extension and then comimg back after the holidays to increase the extension? Are these people idiots?
jddavis on December 20 at 3:08 p.m.
Wouldn’t it be grand if we could have real legislation instead of these temporary “emergency” kick-the-can exercises in futility?
Gee, why don’t we get a budget too!
crazyivan44 on December 20 at 3:33 p.m.
I’m sorry WHS, I gross $36k a year and I’ve worked my @$$ off at 2 jobs so that the only debt I have is a very low mortgage payment I can actually AFFORD, and some student loans. I still manage to put a little in savings every month and donate some to charity because I don’t live in the moment and expect instant gratification, I’m willing to work hard and save to pay for the things I wish to buy, and willing to learn and invest the time to do things myself to save money instead of throwing dollars away for convenience because I’m lazy. I am 100% behind the efforts these “teabagger scum” are pushing for. I believe it is more in line with what our founders envisioned. I don’t believe this because I go home and watch 2 hours of fox news every day, I believe this because I actually picked up books and educated myself. I believe that what I do or don’t do ultimately determines my destiny, not politicians or my government.
So am I the “99%” because I’m not a millionaire or the “1%” because I believe in these ideals? Why is it sinful for someone to have more than others? Is “the man” really keeping YOU down, or are you keeping yourself down and blaming society? If I work 120 hours a week for 5 years to get my own business off the ground and someday am a millionaire does that make me evil? Think about it.
jddavis: Seriously, wouldn’t that be quite the concept! It’s time to kick everyone out of office and hire a few parents that have had to raise 4 kids on a razor thin budget and make it work and have them establish our national budget…I bet we’d have everything paid off in 10 years.
dataxman on December 20 at 4:20 p.m.
jc - you realize the NW Pipeline - which supplies the natgas you burn in your furnace - starts in Alberta, crosses @ Sumas and carries on almost to Texas?
misjustice on December 20 at 5:23 p.m.
The oil is going to be piped down to Texass so that it can be put on a tanker ship heading straight to China…
And as it crosses this nation it will run over several aquifers; the sole clean water for many communities. What could possibly go wrong?
Where’s MY TAX CUT????
nslopeofw on December 20 at 5:37 p.m.
The pipeline is not the issue. The tax break extension for 1 year versus the 2 months Obama wants is the issue. Obama has consistently attempted to raise taxes. He was also in favor of allowing the Bush tax cuts to expire. If you look up what the Bush tax cuts really were, not what the liberal media wants you to believe, you’d see that they were much better for the middle class and poor than the rich. Obama wanted to get rid of the tax breaks for the middle class and poor. He said otherwise, but his actions proved it.
Now, he wants the payroll tax cut to last 2 months, then go away. Boehner wants those tax cuts to last 12 months. Who is actually trying to save the middle class the most money?
Dont be an idiot, and believe the garbage the news channels want you to believe. Use your brains, ignore the party politics, and look at the reality:
Which is better
*** 2 month payroll tax break?
Or
*** 12 month payroll tax break?
detroitdude on December 20 at 7:46 p.m.
” If you look up what the Bush tax cuts really were, not what the liberal media wants you to believe, you’d see that they were much better for the middle class and poor than the rich.”
Right, so I ask why do you all bellyache about 50% of people not paying income tax? This was GWB’s baby, he created all of this. Had he not pushed it through, you all would not have the poor and destitute to pick on.
nslopeofw on December 20 at 9:29 p.m.
GW’s bottom was 5%, not zero.
WHS on December 21 at 7:01 a.m.
crazyivan, what has that got to do with the price of bread? See, I gross around 45K, work two jobs and have a nice low mortgage payment. In fact, I am on track to be debt free in five years (thanks Dave)… I also volunteer over 380 hours a year in my local community… You know what this means? It means I live within my means, that’s all.
I have a challenge for you, since you say you are an educated man. Why don’t you read a little US history, particularly around the framing of our Constitution… Then tell me, what was the common denominator that allowed for the actual document to be written? What did the founding fathers do, that the TP won’t? Then compare that to what the Tea Party is actually doing, and not what they say, but the actual deeds. Then read up on the Tories, and tell me who the Tea Party has more in common with?
Also, in response to your example. No, that does not make you evil. What makes you evil is the fact that now that you are a millionaire, you now consider yourself somehow better than the rest of us… That you deserve special breaks, special treatment and that the rest of us are lazy and stupid. Just ask Herman Cain.
Here is one more question. Of that 36K you make, just how much is from trickle down economics? I mean how many checks did you receive as a result of your employer getting a huge tax break? I mean honestly, how many checks did GE give to their employees as a result of paying ZERO taxes last year? How much of that 8 million they recieved from the federal government did they use to create any jobs? I will tell you… It’s ZERO, ZIP, NADA, ZILCH. In fact, GE actually closed plants in America so they could open up a new plant in Mexico.
And this is what you are fighting for.
WHS