The Guardian
House Republicans set to block two-month payroll tax cut extension
Republicans unwilling to vote for two-month extension as pressure mounts to find long-term solution before 31 December
By Ewen MacAskill
Millions of Americans face uncertainty over their budget plans for next year as Republicans in the House seem poised to reject a deal to extend payroll tax cuts.
The deal looked to be in place after the Senate voted for a two-month extension at the weekend. The White House put out a statement welcoming the move.
But Republican House speaker, John Boehner, who has been at odds almost all year with the White House and Democrats in Congress, held a press conference on Monday morning to reject the Senate deal. He predicted the House would vote it down later on Monday.
About 160 million Americans will see a 2% tax rise if Congress does not agree an extension by 31 December.
The White House sees the tax cut as essential to its strategy for stimulating the economy and for helping create new jobs.
Boehner said Republicans, who have a majority in the House, favoured a year-long extension.
"A two-month extension creates uncertainty and will cause problems for people who are trying to create jobs in the private sector," Boehner said. "No more kicking the can down the road. It's time to stop the nonsense."
"The idea that tax policy can be done two months at a time is the kind of activity we see here in Washington that will put the economy off its track."
The White House also favours a 12-month extension, but is opposed to various conditions that Republicans propose attaching to it, mainly spending cuts. Democratic senators said the two-month extension was the best they could wring out of the Republicans, a temporary compromise to buy time to allow Congress to resume negotiations after the holidays.
Boehner suggested that House leaders get together with Senate leaders to discuss compromise legislation. But that is complicated. Many senators, having assumed a deal had been reached, have left Washington for Christmas. Some may refuse to return.
"This is a vote on whether Congress will stay and do its work or go on vacation," Boehner said. "I expect that the House will disagree with the Senate amendment and instead vote to formally go to conference – the formal process of which the House and Senate can resolve our differences between our two chambers and our two bills."
This kind of stand-off has dominated Congress throughout this year and driven Congress's approval ratings down in the polls.
The White House communications director, Dan Pfeiffer, told MSNBC that Boehner would bear responsibility for the tax increases on millions of Americans.
Both Democratic members of Congress and the White House blame the Tea Party-affiliated Republican members of the House.
"Boehner's a decent guy … but he's got a caucus that is sort of out of control," Democratic senator Charles Schumer told MSNBC. "He's afraid of the 80 Tea Party, way-out-there people in his caucus. He's letting them run the caucus, run his House."
http://www.guardian.co.uk/world/2011/dec/19/house-republicans-block-payroll-tax-deal
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