Tag Archives: pay roll tax cut

Senate vs The House Over Payroll Tax Cut

As it stands, Americans face the uncertainty of whether or not they will be giving more of their money to federal government at the beginning of next year.

Earlier today Speaker Boehner said the House will block the Senate deal stating “A two-month extension creates uncertainty and will cause problems for people who are trying to create jobs in the private sector”. For the purpose of of reaching a potential compromise, Boehner suggested that House leaders meet with Senate leaders.”This is a vote on whether Congress will stay and do its work or go on vacation,” Boehner said. “I expect that the House will disagree with the Senate amendment and instead vote to formally go to conference – the formal process of which the House and Senate can resolve our differences between our two chambers and our two bills.” The bill will be sent instead to a bicameral conference committee.

A short time later Senator Reid responded saying House could either accept the bipartisan compromise or allow taxes to rise next month. “Senator McConnell and I negotiated a compromise at Speaker Boehner’s request” and that he would not reopen negotiations until the House passed the Senate extension.

 

Short-Term Payroll Tax Cut Extension Passes In Senate

On Saturday the Senate agreed overwhelmingly 89-10 to pass a two month payroll tax cut extension. The short term deal is a result of the inability Democrats and Republicans to agree on how to fund a long term extension. Also agreed on was to extend long-term unemployment benefits for another two months. The legislation will be returned to House and be voted on next week. If passed, it will be sent to Obama for his signature.

Fox News reported “Final passage would mean American families would continue to enjoy a 2 percentage point cut from their Social Security tax. In addition, weekly jobless payments averaging about $300 for millions of people who have been out of work for six months or more would be continued.”

In the bill is a provision opposes by Obama which attempts to speed the implementation of the controversial Keystone pipeline. It forces him to make a decision within 60 days. “Here’s the single largest shovel-ready project in America,” Senate Republican Leader Mitch McConnell said on Saturday. “It is literally ready to go with the permission of the President of the United States.”

The recent developments are a result of the President withdrawing his threat to vote the bill. Even though a White House statement made no mention of the pipeline provision.  One White House official said Obama most likely would not grant a permit to begin the pipeline.

Later Saturday the Senate is expected to finish voting on a $915 billion bill to keep many U.S. government agencies operating through next September. The House of Representatives passed this measure on Friday.