WASHINGTON (MarketWatch) — A dispute between Senate leaders about funding the government past Friday delayed a quick vote on a House-passed bill to extend a payroll tax cut, raising the possibility of a government shutdown and leaving the tax cut’s fate in limbo.
The House bill, approved late Tuesday, would keep the payroll tax at its lowered rate of 4.2% but also speed up permitting of a controversial U.S.-Canada oil pipeline that the White House wants to delay.
The Obama administration has threatened a veto, and the House bill is “dead” in the Senate, Democratic Leader Harry Reid predicted on Wednesday morning. Read story about House-passed bill.
Reid said Wednesday that he wanted to quickly vote on the House bill so he and Republicans could “begin serious negotiations” about a payroll-tax cut extension.
Senate Republican Leader Mitch McConnell said Congress should first vote on a bill that would fund government agencies for fiscal year 2012. He objected to Reid’s request for a vote on both the House’s payroll-tax bill and a short-term budget bill to keep the government open past Friday.
Temporary funding for the federal government expires on Friday unless Congress approves a new spending measure. Without one, parts of the government would shut down.
The House Republican bill also would extend unemployment benefits and prevent cuts in Medicare payments to doctors.
Both parties want to keep the payroll tax from going up to 6.2% on Jan. 1 from its current reduced rate.
But the two sides differ drastically about how to pay for it, with Democrats seeking a surtax on incomes of $1 million and above. Republicans have rejected that move. Among other things, the House bill would extend a federal worker-pay freeze through 2013, saving $62 billion.
marketwatch.com
The House bill, approved late Tuesday, would keep the payroll tax at its lowered rate of 4.2% but also speed up permitting of a controversial U.S.-Canada oil pipeline that the White House wants to delay.
The Obama administration has threatened a veto, and the House bill is “dead” in the Senate, Democratic Leader Harry Reid predicted on Wednesday morning. Read story about House-passed bill.
Reid said Wednesday that he wanted to quickly vote on the House bill so he and Republicans could “begin serious negotiations” about a payroll-tax cut extension.
Senate Republican Leader Mitch McConnell said Congress should first vote on a bill that would fund government agencies for fiscal year 2012. He objected to Reid’s request for a vote on both the House’s payroll-tax bill and a short-term budget bill to keep the government open past Friday.
Temporary funding for the federal government expires on Friday unless Congress approves a new spending measure. Without one, parts of the government would shut down.
The House Republican bill also would extend unemployment benefits and prevent cuts in Medicare payments to doctors.
Both parties want to keep the payroll tax from going up to 6.2% on Jan. 1 from its current reduced rate.
But the two sides differ drastically about how to pay for it, with Democrats seeking a surtax on incomes of $1 million and above. Republicans have rejected that move. Among other things, the House bill would extend a federal worker-pay freeze through 2013, saving $62 billion.
marketwatch.com
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