–Senate Majority Leader: Democrats Open To Alternatives on Extension
–Sen. Reid: Payroll Tax Will Be Extended ‘Easy Way’ or ‘Hard Way’
–Sen. Schumer: Boehner Battling GOP ‘Rebellion’ Over Payroll Tax Cut

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid Wednesday said
the Senate will not leave Washington for the Christmas holidays until it
passes a bill to extend the payroll tax cut.

At a briefing with other Senate Democratic leaders, Reid said his
leadership team met with President Obama earlier in the day on the
payroll tax cut issue and all Democrats are determined to stay in
session until the tax cut extension is approved.

Reid said the payroll tax cut will be extended either the “easy
way” or the “hard way.” Reid said Democrats would prefer to “forge a
compromise” with Republicans on the issue, but if not they will continue
to press ahead on the extension.

“The choice is up to the Republicans,” Reid said.

“We’re ruling nothing out,” Reid said, but then added that
Democrats oppose offsetting the package with more discretionary spending
cuts.

Sen. Chuck Schumer said House Speaker John Boehner is facing a
“rebellion” among House Republicans on the payroll tax cut extension
matter. He warned Boehner not to pass an unacceptable version of the
bill next week and then adjourn the House for the year.

Schumer said that Democrats will not relent on the extension.

“We are going to stay here as long as it takes to get something
done,” Schumer said.

Senate Minority Leader Mitch McConnell has said many Republicans
are in favor of a compromise with Democrats on a plan to extend the
payroll tax cut.

But McConnell has accused Democrats of staging several political
votes on the payroll tax extension that were designed to fail.

He said Democrats are more intent on embarrassing Republicans on
the issue of the payroll tax extension than finding an acceptable
compromise. Such a compromise, McConnell said, should not include any
tax hikes to pay for the payroll tax extension.

House Republican leaders are discussing an alternative payroll tax
extension package that would cost about $200 billion and would be paid
for by entitlement and other savings.

The two parties are poised to spend much of the next two weeks
battling over the details of renewing the payroll tax cut and other
expiring tax provisions.

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

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