Taxes

House Says No Thanks To Senate Payroll Tax Deal

WASHINGTON, DC – House Republicans on Tuesday rejected a payroll tax deal that would have extended the payroll tax holiday for two months, saving money for more than 160 million Americans heading into 2012. Instead House Reps. calls for a conference committee to work out differences between House and Senate leaders.

The final partisan vote failed with an outcome of 229-193 after days of squabbling over how to extend the tax cuts and save unemployment for millions of out-of-work employees.

House Republicans are hoping that a Senate conference committee can work to extend a full one-year agreement on the cuts however Senate Majority Leader Harry Reid has said no further negotiations will be accepted until a two-month extension is offered.

Appearing in the White House briefing room President Obama says the Senate plan was the “only viable way to prevent a tax hike on Jan. 1.”

If a deal can not be brokered the end of the tax extension is likely to cost the average American home up to $1,500 per year.

In a letter to President Obama House Speaker John Boehner (R-Ohio) told President Obama that their is still sufficient time for policymakers to negotiate a compromise before the tax cut expires. In his letter he wrote:

“There are still 11 days before the end of the year, and with so many Americans struggling, there is no reason they should be wasted,” while adding, “You have said many times that Congress must do its work before taking vacation. Because we agree, our negotiators and the House stand ready to work through the holidays.”

After the House vote Harry Reid released a statement of his own:

“I have been trying to negotiate a yearlong extension with Republicans for weeks, and I am happy to continue doing so as soon as the House of Representatives passes the bipartisan compromise to protect middle-class families, but not before then.”

In the meantime it’s politics as usual on both sides of the political fence as Republicans and Democrats have spent what appears to be more time with name calling then policy building, throwing around such words as “radical agenda” and “hypocrisy.”

The two month measure set forth by Democrats passes easily through the Senate with a surprising 89-10 partisan vote.

Do you think the 2-month plan should be instituted to give more time for further agreements or should other measures such as ending the Bush Era tax cuts for the wealthy be instituted.

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