–House Speaker Boehner: Still Need To ‘Work Out All The Details’
–Boehner: Deal With Offset UI, Doc Fix, Not Payroll Extension
–Boehner: Hope To Pass Payroll Tax Extension Plan This Week

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner Wednesday said there
is an “agreement in principle” on a payroll tax cut extension package,
but added there are a host of issues that still need to be resolved
today.

At a briefing with House Republican leaders, Boehner said talks are
continuing in an attempt to “work out all the details” of the package.

Boehner confirmed the accord would 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.

But Boehner said the other two 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.

Boehner said the compromise, in which part — but not all — of the
package would be offset was necessary because Democrats “continue to
play political games” with the payroll tax cut matter.

He said Democrats are willing to “cause a tax increase” on 160
million Americans, by resisting spending cuts to pay for the package.

“We have worked all year to cut spending,” Boehner said.

Boehner said he expects the final details to be resolved Wednesday
and for the package to be considered by the House this week.

One of the issues that appears to be unresolved is how the
unemployment insurance program will be restructured. Republicans are
trying to reduce the maximum length of jobless benefits, cutting them
from 99 weeks to 63 weeks. Democrats appear determined to increase this
number.

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 deadlock, the payroll 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.

A House-Senate conference committee has been working for several
weeks to draft a payroll tax cut package. 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 extension 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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