–House Minority Whip Hoyer: Sees House GOP ‘Retreat’ on Payroll Plan
–Rep. Hoyer: ‘Concerned’ About Moving Payroll Cut Alone
–Rep. Hoyer: Payroll Cut Should Be Paid For ‘Over The Long-Term’

By John Shaw

WASHINGTON (MNI) – House Minority Whip Steny Hoyer Tuesday said he
has “concerns” about a possible House Republican plan to pass a payroll
tax cut extension as a separate bill.

At a briefing, Hoyer spoke warily about a House Republican plan to
extend the payroll tax cut for the rest of the year without requiring
budget offsets.

Hoyer said he is concerned the House GOP plan does not also deal
with two other parts of the overall package: renewing unemployment
insurance benefits and preventing a deep cut in Medicare reimbursements
for doctors.

“We believe all three need to move forward,” Hoyer said.

“Our concern is we want to do all three,” he added.

Hoyer said he believes internal Republican divisions on the payroll
tax cut matter continue and complicate consideration of the package.

Republicans, he said, are “deeply divided on what to do,” regarding
the payroll tax cut extension.

He said passing a full year tax cut extension is a “retreat from
their position.”

Hoyer said he still believes that tax cuts should be offset,
including the payroll tax cut.

“I think this tax cut should be paid for over the long-term,” Hoyer
said.

In a surprising development Monday, House Speaker Boehner and
Majority Leader Eric Cantor said 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.

Boehner and Cantor said their alternative plan would extend the
payroll tax cut for the rest of the year without requiring budget
offsets.

The Boehner-Cantor proposal would not deal immediately with the
other parts of the package: renewing unemployment insurance benefits and
preventing a deep cut in Medicare reimbursements for doctors. They said
talks on those issues should continue.

Earlier Tuesday, Senate Majority Whip Dick Durbin, the second
ranking Senate Democrat, praised the new House GOP proposal.

“I think Speaker Boehner is right,” to alter his position,” Durbin
said.

Durbin said Congress should extend the payroll tax cut and then
continue to work on renewing unemployment benefits and passing the
so-called “doc fix.”

Durbin said renewing unemployment insurance benefits is of “equal
value” to the economy as is the payroll tax cut extension and is also of
huge importance to individuals who are unemployed.

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

The talks are focusing 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 Obama and congressional leaders have
said they want to pass a one year extension of these programs, but there
are scores of policy details to resolve as well as a budget offset
package.

House Republicans recommended 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 have preferred 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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