–Senate Majority Leader Hammers House GOP ‘Intransigence’ On Payroll
–Senate Passed Bipartisan Deal At Boehner’s ‘Request’
–Democrats Have No Plans To Return To DC For Talks
–House Expected To Reject Senate Payroll Tax Cut Deal Monday Evening

By John Shaw

WASHINGTON (MNI) – In a direct challenge to House Speaker John
Boehner’s shifting payroll tax cut strategy, Senate Majority Leader
Harry Reid said Monday that he will not “re-open negotiations” on the
issue until after the House passes a two month extension of the various
programs.

In a statement, Reid blasted House Republican “intransigence” and
said that Boehner had urged Reid and Senate Minority Leader Mitch
McConnell to negotiate an agreement on a payroll tax cut package.

Reid said that he and McConnell did so and pushed it through the
Senate Saturday on a sweeping 89 to 10 vote.

“Senator McConnell and I negotiated a compromise at Speaker
Boehner’s request,” Reid said.

He added the best they could do was agree on a two-month extension.

“I have always sought a year-long extension. I have been trying to
forge one for weeks,” Reid said.

He signalled very clearly that he will not call the Senate back to
Washington this week to negotiate over the payroll tax cut extension.

Earlier Monday, Boehner said at a briefing that he opposes the
Senate’s compromise plan that gives a two-month extension to last year’s
payroll tax cut, renews unemployment insurance benefits and prevents a
sharp cut in doctor payments under Medicare.

Boehner said the House will vote Monday evening on the Senate plan
and added the House should defeat the measure and then request formal
talks with Senate leaders on a compromise package.

The House vote on the Senate payroll tax cut plan is expected at
about 6:30 p.m. ET.

Boehner said Congress should pass a one-year payroll tax cut
extension package, adding that a two-month renewal creates additional
“uncertainty” for the economy.

Boehner said that Congress should be able to forge a one-year
bipartisan agreement.

The Senate approved Saturday on an 89 to 10 vote a payroll tax cut
package that Reid and 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.

Under the bill the Senate passed, a construction permit for
Keystone pipeline will go forward within 60 days unless the president
determines that the pipeline is not in the U.S.’s national interest.

Boehner touted the payroll tax cut package that the House approved
last week on a mostly party line vote. The House GOP plan was approved
on a 234 to 193 vote.

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.

The White House and most congressional Democrats opposed the plan,
saying it was a partisan bill that includes controversial items such as
the Keystone XL pipeline provision.

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

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