–House Speaker Says Senate Should Pass House GOP Bill
–Hill Has Reached Accord on $900 Bln FY 2012 Omnibus Bill

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner said Tuesday the
House later today will pass with “bipartisan support” the payroll tax
cut extension bill that was drafted by House Republicans.

At a briefing after a House Republican policy meeting, Boehner
predicted House passage of the payroll tax cut package and urged the
Senate to do the same.

“It’s time for the United States Senate to act,” Boehner said.

Boehner said the package is a “reasonable, responsible bill” that
was “put together in a bipartisan way.”

The Speaker said the package includes needed reforms of the
unemployment insurance program, adding “the program has become somewhat
unwieldy.”

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 pipeline 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,
which 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.

Congressional Democrats oppose the plan as a partisan bill that
includes controversial items such as the Keystone XL pipeline provision.

The bill is expected to clear the House in a mostly party line
vote.

On another matter, Boehner said the House and Senate have completed
talks on a $900 billion omnibus spending package for the 2012 fiscal
year.

“It’s done,” Boehner said, adding “there is no problem with the
bill.”

The package includes the nine fiscal year 2012 bills that have not
been approved. A stop-gap bill funding the federal government expires
Friday. The fiscal year began Oct. 1 of this year.

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

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