US Sen.Baucus: Only Have ‘Matter of Days’ For Payroll Tax Deal

–Senate Finance Chair: ‘Very Little Time’ to Get Tax Cut Extension Deal
–House Ways and Means Chief: Need $150-160 Bln in Offsets For Deal
–Rep. Camp: ‘Broad Consensus’ On What Items Must Be In Package

By John Shaw

WASHINGTON (MNI) – House Ways and Means Committee Chairman Dave
Camp and Senate Finance Committee Chairman Max Baucus Tuesday convened
the fourth meeting of the House-Senate conference committee to draft a
payroll tax cut extension package, with each saying that policymakers
need to nail down an accord soon.

Camp said there is a “pretty broad consensus” that the package
should extend the payroll tax cut, renew unemployment insurance benefits
and prevent a deep cut in Medicare reimbursements for doctors.

A one-year package with these items would cost between $150
billion and $160 billion, Camp said.

Camp outlined three proposals that could pay for about half of the
package: extending a federal employee pay freeze ($26 billion),
increasing Medicare premiums for upper income beneficiaries ($31
billion), and cutting funds from the new health care law ($13 billion).

Some Democrats object to these offsets.

Baucus said the House-Senate talks have made “real progress,” but
said it is time to step up the pace.

“Getting to work means reaching an agreement,” Baucus said, adding
that an agreement is needed within “a matter of days.”

“We have very little time,” he said.

Congress passed a two-month extensions of these programs in
December which will expire at the end of February. President Barack
Obama and congressional leaders say they want to pass a one-year
extension of these programs, but there are scores of policy details to
resolve as well as a budget offset package of at least $160 billion.

Funding the package will be complex and politically difficult.

House Republicans recommend paying for the package by the policies
that Camp outlined: extending a federal employee pay freeze, increasing
Medicare premiums for upper income beneficiaries, and cutting funds from
the new health care law.

Senate Democrats prefer to pay for the package by imposing a surtax
on those with incomes over $1 million.

Speaking on the Senate floor Tuesday morning, Minority Leader Mitch
McConnell “there is no reason we shouldn’t be able to get this done,”
referring to the payroll tax cut extension package.

But McConnell said Democrats are now “more interested in scoring
political points” than negotiating an agreement. He urged “both sides to
engage in good faith negotiations.”

Senate Majority Leader Harry Reid has threatened to offer a Senate
Democratic plan if the House-Senate conference panel fails to reach an
agreement soon.

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

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