–Congressional Democrats Scorch House GOP For Scuttling Tax Plan
–Sen. Schumer, Rep. Van Hollen Pound House Republicans
–Sen. Schumer: House Should Pass Senate Compromise, Then Begin Talks

By John Shaw

WASHINGTON (MNI) – Clearly sensing that House Republicans made a
major tactical mistake by rejecting a Senate compromise plan to extend
the payroll tax cut, several leading Democrats Wednesday blasted the
House GOP for intransigence and urged them to pass a short-term
extension and then negotiate a longer-term deal.

In a conference call, Sen. Chuck Schumer and Rep. Chris Van Hollen
hammered House Republicans for blocking a Senate compromise bill to
extend the payroll tax cut.

Schumer said the House GOP should show “their good faith” on the
issue by passing the Senate’s two month extension package and then
entering negotiations on a year-long package.

Schumer said Democrats find it hard to deal with House Speaker John
Boehner because his shifting positions have made talks with him “like
nailing jello to the wall.”

“We will listen to anything they have to say,” Schumer said, but
added that he fears GOP “subterfuge” on the issue.

Van Hollen said congressional Republicans are in a bitter internal
struggle between “the right and the far right.”

Van Hollen said the House should pass the “bipartisan Senate bill.”

Speaking earlier in the day, House Speaker John Boehner and House
Majority Leader Eric Cantor said they are eager to negotiate with the
Senate and President Barack Obama on a final deal.

Cantor said the differences that divide the two sides are “not very
great” and can be resolved relatively easily.

The House voted Tuesday to reject the Senate’s compromise bill that
would have given a two month extension to last year’s payroll tax cut,
renew unemployment insurance benefits and prevent a sharp cut in doctor
payments under Medicare.

The House also voted Tuesday to reaffirm its support of the
Republican package, which would extend for one year the current 4.2%
payroll tax rate for employees and renew unemployment insurance benefits
for workers who have been unemployed for more than six months. The plan
would extend for two years the so-called “doc fix” to prevent Medicare
payments to doctors from being cut by more than 27%.

The House GOP plan would also remove barriers to construction of
the Keystone XL pipeline project and delay a new pollution standard for
industrial boilers.

Senate Majority Leader Harry Reid has said the Senate has already
passed a bipartisan compromise plan and he will not enter into yet
another round of talks with the GOP.

The Senate approved Saturday on an 89 to 10 vote a payroll tax cut
package that Reid and Senate Minority Leader Mitch McConnell negotiated.

Senate leaders were unable to reach a broad agreement that would
have funded the package for a full year, so they agreed to extend
various programs for two months.

The scaled-back package would cost about $40 billion and would be
paid for by higher fees that Fannie Mae and Freddie Mac charge to
mortgage home lenders.

** Market News International Washington Bureau: (202) 371-2121 **

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