–Retransmitting Story Published 23:17 ET Tuesday
–Compromise Extends Payroll Tax Cut Til End of Year Without Offsets
–Accord Also Extends UI Benefits And ‘Doc Fix’ With Offsets
–House, Senate Hope To Vote On Package By End of This Week

By John Shaw

WASHINGTON (MNI) – Congressional leaders reached a tentative
agreement Tuesday night to extend the payroll tax cut until the end of
the year, with lawmakers agreeing not to offset the $100 billion cost of
the payroll tax cut extension.

The agreement also calls for a renewal of unemployment insurance
benefits and an adjustment in the Medicare reimbursement of doctors, a
Republican staffer said.

These two items would cost about $50 billion and will be offset
through a hodgepodge of spending reductions, the staffer said.

The package will be reviewed Wednesday morning by rank and file
House members.

The House would vote on the package first and, if approved, the
Senate would then take up the measure.

Congress is scheduled to leave Washington Friday for a week-long
recess and congressional leaders would like to pass the package before
departing Washington.

After weeks of stalemate, the package came together after House
Republican leaders said Monday they would be willing to extend last
year’s payroll tax cut for the rest of this year without requiring
budget offsets.

Senate Majority Leader Harry Reid indicated Tuesday afternoon that
this idea created the framework of an agreement.

Reid said he was “hopeful and cautiously optimistic” that a way
could be found to pass the payroll tax cut extension package in both the
House and Senate.

A House-Senate conference committee has been working for several
weeks to draft a payroll tax cut package, but the talks clearly
stalemated last week

Those talks focused on a $160 billion package to extend the payroll
tax cut, extend unemployment insurance benefits and prevent a deep cut
in Medicare reimbursements for doctors.

Congress passed a two month extensions of these programs which will
expire at the end of February. Both President Obama and congressional
leaders have said they want to pass a one year extension of these
programs, but the House-Senate talks stalled out over the offset package
and other policy matters such as an overhaul of the UI program.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]