Congress sees standoff over payroll tax

Officials say the two-month Senate plan cannot be implemented properly

By David Espo

Associated Press

Published: Monday, Dec. 19 2011 10:39 p.m. MST

In this Sunday, Dec. 18, 2011, photo provided by NBC News, Speaker of the House, Rep. John Boehner, R-Ohio, appears on NBC's "Meet the Press" in Washington.

The Associated Press

Enlarge photo»

WASHINGTON — Congress careened toward a holiday-season standoff Monday on legislation to prevent a Social Security payroll tax increase for 160 million workers on Jan. 1.

"It's time to stop the nonsense. We can resolve these differences and we can do it in a way that provides certainty for job creators and others," said Speaker John Boehner, R-Ohio. A vote was set for Tuesday for the House to reject a bipartisan two-month extension that cleared the Senate over the weekend and seek negotiations on a bill to renew the cuts through 2012.

In an acid response, Senate Majority Leader Harry Reid accused Boehner of risking a tax increase for millions "just because a few angry tea partyers raised their voices." The Nevada Democrat ruled out new negotiations until the two-month measure is enacted.

That left the two parties approaching Christmas-week gridlock over an effort to pass core elements of President Barack Obama's jobs program — renewal of the tax cuts and long-term unemployment benefits — that Republican and Democratic leaders alike said they favored.

It was the latest and likely the last such partisan confrontation in a year of divided government that brought the Treasury to the brink of a first-ever default last summer, and more than once pushed the vast federal establishment to the edge of a partial shutdown.

This time, unlike the others, Republican divisions were prominently on display.

The two-month measure that cleared the Senate, 89-10, on Saturday had the full support of the GOP leader, Sen. Mitch McConnell, who also told reporters he was optimistic the House would sign on. Senate negotiators had tried to agree on a compromise to cover a full year, but were unable to come up with enough savings to offset the cost and prevent deficits from rising.

The two-month extension was a fallback, and officials say that when McConnell personally informed Boehner and House Majority Leader Eric Cantor of the deal at a private meeting, they said they would check with their rank and file.

But on Saturday, restive House conservatives made clear during a telephone conference call that they were unhappy with the measure.

"I've never seen us so unified," Rep. Louie Gohmert, R-Texas, said as he left a two-hour, closed-door meeting Monday night where Republicans firmed up their plans.

Not surprisingly, the White House weighed in on the side of Obama's Democratic allies.

Spokesman Jay Carney said Boehner was for the two-month stopgap bill "before he was against it" — a claim that the House speaker flatly denied.

Speaking to reporters at the White House, Carney added, "It is not our job to negotiate between him and Senate Republicans."

"We are witnessing the concluding convulsion of confrontation and obstruction in the most unproductive, tea party-dominated partisan session of the Congress in which I have participated," said Rep. Steny Hoyer of Maryland, second-ranking member of the Democratic leadership.

Ironically, until the House rank and file revolted, it appeared that Republicans had outmaneuvered Obama on one point.

The two-month measure that cleared the Senate required him to decide within 60 days to allow construction on a proposed oil pipeline that promises thousands of construction jobs. Obama had threatened to veto legislation that included the requirement, then did an about face.

The president recently announced he was delaying a decision on the pipeline until after the 2012 elections, meaning that while seeking a new term, he would not have to choose between disappointing environmentalists who oppose the project and blue collar unions that support it.

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