–Senate Majority Leader: House GOP Payroll Tax Cut Bill ‘Dead Duck’
–Sen. Reid: Need ‘Real Negotiations’ On Payroll Tax Cut
–Senate Minority Leader McConnell: Should Pass FY’12 Omnibus Spend Now
–Sen. McConnell: ‘We Have An Agreement’ On FY’12 Omnibus Spend Bill
–Senate To Vote On Two Balanced Budget Amendments At 10:45 a.m. ET
By John Shaw
WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Minority Leader Mitch McConnell continued Wednesday their high stakes
battle on the remaining fiscal issues, with Reid calling for an
immediate Senate vote on the House-passed payroll tax cut extension bill
while McConnell insisted the Senate first take up a fiscal year 2012
omnibus spending bill.
The Senate will vote Wednesday at 10:45 a.m. ET on two balanced
budget constitutional amendments. Both are expected to fail.
In back-to-back speeches on the Senate floor Wednesday, Reid and
McConnell continued to blame the other party for the Senate’s impasse.
Speaking first, Reid said the Senate should vote immediately on the
House-passed payroll tax cut extension bill. Reid said the House GOP
bill is a “dead duck” in the Senate chamber.
“Let’s get this over,” Reid said of the Senate vote on the House
GOP plan which he called a “useless partisan charade.”
After the Senate rejects the House GOP bill, Reid said, “real
negotiations” between Democrats and Republicans can begin to craft a
final payroll tax cut package.
“It’s time for the two sides to come together and compromise,” Reid
said.
Reid said House Speaker John Boehner can’t begin talks with him on
the payroll tax cut extension until the Senate considers — and rejects
— the House GOP bill.
The House GOP bill passed the House Tuesday night on a mostly party
line vote. The vote was 234 to 193 vote. All House Republicans except
for 14, voted for the bill. All Democrats, except for 10, voted against
it.
The House Republican package 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 project and delay a new pollution standard for
industrial boilers.
The House GOP package would cost about $195 billion, with about
$120 billion of the cost coming from the payroll tax cut extension. The
package is paid for by a host of spending savings including minor
adjustments to the Social Security and Medicare programs and fees
imposed on Fannie Mae and Freddie Mac. It would also freeze the salaries
of civilian federal workers through 2013.
Reid said the House-Senate talks on a $900 billion omnibus spending
bill are going well but have not yet been completed. He said there are
“still critical issues to be ironed out.”
The package includes the 9 fiscal year 2012 bills that have not yet
been approved. A stop-gap bill funding the federal government expires
Friday. FY’12 began Oct. 1 of this year.
McConnell had a nearly opposite interpretation of the payroll tax
cut and omnibus spending bill issues.
McConnell said that the House Republican payroll tax plan should be
set aside and Congress should take up the omnibus spending bill. “Do
first things first,” McConnell said.
On Tuesday, McConnell had called for an immediate Senate vote on
the House GOP payroll tax plan. He called it a “complete package” and a
“very balanced package” that deserves prompt House and Senate approval.
Speaking Wednesday, McConnell repeated that the talks on the FY’12
omnibus spending bill have successfully been concluded.
“There is an agreement on the funding bill,” McConnell said. “It’s
ready to go.”
Congressional leaders have said they hope to adjourn for the year
on Friday. But the deadlock on the payroll tax cut extension could push
back this adjournment date until early next week.
** Market News International Washington Bureau: (202) 371-2121 **
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