Congress agrees to payroll tax deal; Obama to sign
By Michael A. Memoli
7:07 AM PST, December 23, 2011
Congress swiftly approved a two-month extension of the payroll tax holiday
this morning, ending for the moment a contentious three-month battle over one of
President Obama's top legislative priorities.
In a near-empty Capitol
building, the Senate and then the House signed off on a compromise plan by
unanimous consent, a procedural move that allowed the legislation to move to the
president's desk without requiring most lawmakers to return to
Washington.
In addition to keeping Social Security payroll taxes at
current levels for an additional two months, the deal struck by party leaders
Thursday would maintain unemployment insurance for people who have been jobless
for an extended period and would block a cut in the payments doctors receive for
treating Medicare patients.
After Jan. 1, congressional negotiators
would meet to decide how to extend the provisions for the rest of
2012.
Obama is expected to quickly sign the accord, allowing him to join
his family in Hawaii for his traditional holiday retreat in his home
state.
Friday's action came after House Speaker John A. Boehner backed
off his insistence that Congress enact only a full-year extension of the tax
break.
Republican rank-and-file members opposed the temporary accord
that had been overwhelmingly approved in the Senate last weekend. But the Ohio
Republican had found himself with few allies outside his chamber as the
Democrats and the White Housed appeared to have the upper hand, arguing that the
House was risking a $40 a paycheck tax hike for average workers in the New
Year.
"It's not always easy to do the right thing," Boehner said Thursday
night.
After reaching an accord with Senate Majority Leader Harry Reid
Thursday, Boehner took an unusually firm approach with his conference during a
conference call Thursday evening, according to those familiar.
One
freshman Republican expressed the disappointment and frustration the new
lawmakers feel with the deal.
"The House has caved yet again to the
president and Senate Democrats," said Rep. Tim Huelskamp of Kansas. "The
Republican majority would not exist if not for the conservative freshman class
of 2010. We were sent here with a clear set of instructions from the American
people to put an end to business as usual in Washington, yet here we are being
asked to sign off on yet another gimmick. No wonder the American people are left
with a bad taste in their mouths when it comes to Congress."
After a holiday break, appointed conferees will begin discussing ways to fund
a full-year extension of the tax holiday. It was an impasse how to achieve just
that which forced the temporary measure; Democrats had offered with a surtax on
millionaires, while Republicans favored steep spending cuts.
Speaking after the Senate action, Reid expressed his hope that the end of
this year would also mean the end of the kind of brinkmanship seen on major
budget fights throughout 2011.
"I hope this Congress has had a very good learning experience," the Nevada
Democrat told reporters. "Everything we do around here does not have to end up
in a fight."
Lisa Mascaro contributed to this report.
Copyright © 2011, Los Angeles Times