–House Speaker Boehner: Payroll Tax Cut Accord Is ‘Fair Agreement’
–Rep. Boehner: Still Have To Resolve ‘Drafting Issue’ On Plan
–Rep. Boehner: Payroll Tax Cut Is An ‘Economic Relief Package’
–House Minority Leader: ‘Important’ To Pass Agreement Quickly
–Rep. Pelosi: Plan Includes Key ‘Features’ That Are ‘Necessary’

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner and House Minority
Leader Nancy Pelosi said Thursday they support the payroll tax cut
agreement, although with different levels of enthusiasm.

In back to back briefings, Boehner and Pelosi said the agreement is
basically sound and should be approved by Congress.

Boehner said the package is a “fair agreement,” but said it is
needed because the economy is basically weak.

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

The Speaker declined to say when the House will vote on the
package, saying that due to a “drafting issue” the bill has not been
formally filed.

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

She then referred to its 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.

Speaking earlier Thursday, Senate Majority Leader Harry Reid said
he wants the Senate to vote by Friday on the payroll tax cut extension
package.

In remarks on the Senate floor, Reid said the Senate vote on the
package will occur after the House votes on the bill.

The Senate should pass the measure “as quickly as we can,” Reid
said.

Both the House and Senate appear likely to vote on the package
Friday.

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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