–House Leaders Offer Clear Expression of Support For Accord
–Senate Majority Leader Reid Seeks ‘Expedited’ Passage of Bill
–Senate Minority Leader McConnell Remains Cagey About Package

By John Shaw

WASHINGTON (MNI) – Key congressional leaders said Thursday they
want the House and Senate to pass the payroll tax cut extension
agreement Friday, but accomplishing this is going to require support
from rank-and-file members to both allow the votes to occur and then to
approve the plan.

Both House Speaker John Boehner and House Minority Leader Nancy
Pelosi offered clear support for the package at separate briefings
Thursday, with Pelosi more obviously supportive of the package than
Boehner.

Boehner said the package is a “fair agreement,” but added that it’s
needed because the economy is weak and President Obama’s economic
policies have failed.

“This is an economic relief package,” Boehner said.

Pelosi spoke more favorably about the plan, saying it “does contain
the three features that are necessary.”

She then cited the package’s inclusion of a payroll tax cut
extension, renewal of unemployment insurance benefits, and the so-called
doc-fix.

Pelosi also said that she hopes the House votes on the plan Friday.
“I think it will be important to bring it up tomorrow,” she said.

She added that the House should pass the package “as soon as
possible” to end any uncertainty about the payroll tax cut extension.

She also signalled strong Democratic support for the measure. “I
don’t see a scenario where our members will vote against it,” she said.

In comments Thursday, Senate Majority Leader Harry Reid did not
speak to the substance of the package, but his comments about putting
the bill on a fast track in the Senate appeared to imply strong support.

“We will do it here as quickly as we can. We are going to see if
things can be expedited,” Reid said.

Senate Minority Leader Mitch McConnell has been conspicuously
silent on the package. When asked to comment Tuesday on the essence of
the plan, McConnell said he didn’t have a “view” on its merits.

Several Senate Republicans have said that they felt excluded from
the final round of talks on the bill which were conducted by Senate
Finance Committee Chairman Max Baucus, a Democrat, and House Ways and
Means Committee Chairman Dave Camp, a Republican.

Boehner, at his briefing, dismissed the charge that Senate
Republicans were excluded.

“They’ve been involved in the process as anyone else. There were
two or three public meetings where they were all present, so for someone
to say they weren’t involved here would be surprising,” Boehner said.

For the House and Senate to vote on the package will require
cooperation from rank-and-file members. The House will have to waive a
requirement that all legislation be made public 72 hours before a vote.

And the Senate will have to accept a motion by Reid to set aside
the pending transportation bill and move to the payroll tax cut package.

The package would extend last year’s payroll tax cut until the end
of this year and the $100 billion cost of the payroll tax cut extension
would not be offset.

The other two main items in the package would be offset: a renewal
of unemployment insurance benefits and an adjustment in the Medicare
reimbursement of doctors so that a 27% payment cut is prevented.

These two items would cost about $50 billion and will be offset
through an assortment of spending reductions.

Congress is scheduled to leave at the end of the week for a
week-long recess and congressional leaders are determined to pass the
package before departing Washington.

The payroll tax cut extension 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.

The House-Senate conference committee had been working for several
weeks to draft a payroll tax cut package. Those talks focused on a $150
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 **

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