House Rejects Senate's 2 Month Payroll Tax Cut Extension
The fight continues this Tuesday as the House of Representatives voted down the Senates 2 month payroll tax cut extension. It would have extended the tax cut and unemployment benefits for two months. Passing 229 to 193, the vote calls for a negotiating committee for the two chambers to resolve their differences. Seven Republicans joined Democrats in opposition.
Republicans say the 2 month extension leaves Americans in the dark during a time of bleak economic uncertainty and that it would leave Congress facing the same issue early next year. House Majority Leader Eric Cantor said “Middle-class Americans and working families need to know that their taxes won’t be going up at any point next year”. Rep. Lynn Jenkins stated “Handling tax policy on a month-to-month basis isn’t just irresponsible, it’s downright crazy”. He also questioned how dealing with this issue in February would be any easier than it is now.
Democratic Representative Nancy Pelosi felt it easier to blame “the extreme Tea Party element of the Republicans in the House”. She said “They’ve never wanted a tax cut, and now they’re saying the tax cut for middle-income people is too small”. Sen. Charles Schumer, in a statement Monday night, accused the House Speaker of age old tactics used by both parties saying “Speaker Boehner is using one of the oldest tricks in Washington of claiming to support something and then sending it to a legislative graveyard where it never sees the light of day”.
If a deal is not reached by the end of the year, hard working Americans would see their payroll taxes go back to 6.2% of earnings, from the current 4.2% rate.