–House Speaker Says Dems Have Rejected ‘Virtually Every’ Spending Cut
–Rep. Boehner: House GOP Working On 1 YR Payroll Tax Cut Extension
–Rep. Boehner: Have Negotiated ‘In Good Faith For Months’

By John Shaw

WASHINGTON (MNI) – House Speaker Boehner and House Majority Leader
Eric Cantor said Monday they are preparing a “backup” plan to extend the
payroll tax cut, which they will offer if the current negotiations fail
to make progress soon.

In a statement, Boehner and Cantor expressed clear frustration at
the pace of the talks and what they regard as Democratic intransigence
in striking a deal.

“Republicans have attempted to reach an agreement and negotiated in
good faith for months,” the GOP leaders said.

Boehner and Cantor scorched Democrats for not fully engaging in the
talks.

“Democrats have refused virtually every spending cut proposal,”
they said, referring to the effort to offset the package.

Boehner and Cantor said their alternative plan would extend the
payroll tax cut for the rest of the year, but would not deal with other
parts of the package.

The House-Senate talks have tried to craft a $160 billion package
that would extend the payroll tax cut, renew unemployment insurance
benefits and prevent a deep cut in Medicare reimbursements for doctors.

House Ways and Means Committee Chairman Dave Camp and Senate
Finance Committee Chairman Max Baucus have been leading the talks and
reportedly exchanged ideas over the weekend.

Senate Majority Leader Harry Reid said last week that he is
drafting his own alternative plan and hinted that it would pay for the
full $160 billion package with a surtax on the wealthy.

The House-Senate conference committee has been working for several
weeks to draft a compromise package.

Congress passed a two month extension of the three programs which
will expire at the end of February. Both President Obama and
congressional leaders say they want to pass a one year extension, but
there are scores of policy details to resolve as well as a budget offset
package.

House Republicans recommend paying for the package by extending a
federal employee pay freeze, increasing Medicare premiums for upper
income beneficiaries, and cutting funds from the new health care law.

Senate Democrats prefer to pay for the package by imposing a surtax
on those with incomes over $1 million.

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

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