Tuesday U.S. Senate ~ Tax Cut Bill Expected to Pass On Tuesday ...

Snip ~ "Republicans are widely seen as using Keystone as a bargaining chip in their negotiations with Democrats over how to pay for the $120 billion cost of the payroll tax cut. Democrats are pushing for a surtax on millionaires to pay for it, which almost all Republicans reject"

December 12, 2011

Republican Keystone, tax cut bill expect to pass on Tuesday

Washinton, A Republican bid to force President Barack Obama to speed up approval of the Keystone XL Pipeline project looked set to pass the House of Representatives on Tuesday but will likely stall in the Democratic-controlled Senate, aides said.

Republicans have linked the proposed Canada-to-Texas oil pipeline to President Barack Obama's efforts to extend a payroll tax cut for workers. Some economists warn that allowing the tax cut to expire could damage a fragile U.S. economic recovery.

The top Republican in Congress, Speaker John Boehner, said on Monday he was confident the House would pass a Republican measure that includes extending the tax cut beyond this year and sets a deadline for a decision on the fate of the delayed pipeline, which has drawn fire from environmentalists.

Boehner did not predict Senate passage, but told reporters, "I think we have a good shot."

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For the House bill to win Senate approval, 13 Democrats would need to join the chamber's 47 Republicans to provide the needed 60 votes to clear a procedural hurdle. Only a handful of Democrats are expected to vote yes, aides said.

The State Department effectively slammed the brakes on the Republican effort on Monday. It said plans to fast-track the Keystone XL decision would violate environmental laws and force it to withhold approval.

"Should Congress impose an arbitrary deadline for the permit decision ... the department would be unable to make a determination to issue a permit for this project," the State Department said in a statement.

Republicans are widely seen as using Keystone as a bargaining chip in their negotiations with Democrats over how to pay for the $120 billion cost of the payroll tax cut. Democrats are pushing for a surtax on millionaires to pay for it, which almost all Republicans reject.

"There will be an agreement," a Republican aide said.

"It's just a matter of when," a top Democratic aide added.

Congress is due to go on holiday on Friday but may remain in session through next week if a deal remains elusive. Obama has also said he will delay his vacation in Hawaii to stay in Washington to secure an agreement.

The 4.2 percent payroll tax that workers pay to fund the Social Security retirement program will return to 6.2 percent if Congress fails to act by month's end. That would hike taxes on 160 million Americans an average of $1,000 per family.

Obama and fellow Democrats have led the charge to extend the tax break, cranking up political heat on Republicans to join in or face a voter backlash in the 2012 elections.

Chris Krueger of Guggenheim Securities' Washington Research Group, a private firm that tracks Washington for investors, said the Keystone project has helped put "Republicans on offense."

"They were getting clubbed before they dropped this into the negotiations," Krueger said. "Ultimately, it will likely get dropped but it will keep coming up in future negotiations".

Keystone backers, including trade unions normally friendly to Democrats, say the project would make the U.S. more energy independent and help create about 20,000 jobs to lower the stubbornly high U.S. unemployment rate, now at 8.6 percent.

Obama has delayed a decision on the pipeline project, pending further environmental studies. That would push the decision past next year's election and allow him to avoid angering environmentalists ahead of the campaign.

Senate Majority Leader Harry Reid, a Democrat, may offer an alternative to the House Republican bill, one that renews the payroll tax and extend jobless benefits without the Keystone provision, aides said.

But that will also likely fail, triggering negotiations between Reid and Boehner.

Aides and lawmakers say there are several areas for possible compromise in the final bill, which would also renew jobless benefits that are set to begin to expire on December31.

Republicans want to boost fees paid by Fannie Mae and Freddie Mac, government-sponsored entities that are the biggest providers of U.S. mortgage financing. This would save the Treasury about $38 billion and could win Democratic support.

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Senate may vote this week on new payroll tax plan

December 5, 2011

Senate may vote this week on new payroll tax plan

Washington, Senate Majority Leader Harry Reid hopes to get a vote this week on his soon-to-be proposed "compromise" to extend a popular payroll tax cut, a Democratic aide said on Monday.

The aide said Reid plans to release details of the proposal later in the day, and it would represent a middle ground between rejected Democratic and Republican approaches to cover the cost of renewing the tax break set to expire on December 31.

Last week, the Senate defeated a Democratic proposal to pay for it with a tax hike on the rich. It then killed a Republican proposal to cover the cost by extending a federal worker pay freeze and downsizing the federal workforce.

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The aide said Reid is guardedly hopeful that his proposal will win bipartisan passage in the Democratic-led Senate, and that a vote may be held this week.

"It will be a compromise - a compromise between the Republican approach and our approach," the aide said.

"It will be very difficult for Republicans who want to be on the right side of this issue to vote against it," the aide said.

Republicans were initially reluctant to embrace President Barack Obama's called to extend the payroll tax cut, citing its projected $110 billion cost next year and voicing doubt that it would stimulate the economy.

But with fears of a political backlash in the run-up to November's presidential and congressional elections, their leaders have decided to push for an extension - provided an agreement can be reached on how to pay for it.

Without congressional action by December 31, the payroll tax that workers pay would revert to 6.2 percent, up from the current 4.2 percent tax. On average, it would cost American families about $1,000 a year.

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*Monday, December 5th ~ Compromise On Payroll Tax Cut Extension Coming On Monday, Democratic Senator Says ...

Related to Taxes ~ Tax Holiday (Corporation) ~ Legislation calling for a 5.25 percent repatriation tax rate has bipartisan support in the Senate ....

Thank you to bama for the following ...

December 4, 2011

Compromise On Payroll Tax Cut Extension Coming On Monday, Democratic Senator Says

Sen. Kent Conrad, the chairman of the Senate Budget Committee, said on Fox News Sunday today that Sen. Harry Reid will offer a compromise proposal on Monday to extend the payroll tax cut into next year.

Democrats and Republicans rejected each others plans in dueling votes on Thursday night. Republicans wanted to extend a federal pay freeze, while Democrats wanted a surtax on incomes over $1 million to pay for the extension.Both parties say the question of extending the tax is not a question of whether, but of how to pay for it.

Conrad promised that "It will be paid for, it will be in a way that is credible and serious," saying he discussed the proposal with Reid yesterday.

He added that the Reid plan will be "serious attempt to move this ball forward because we should not have a tax increase on the middle income.

That just makes no sense in this economy."The extension of the tax cut is seen as vital for the economy by economists on both sides of the aisle, and allowing it to lapse would mean the average American family would see a $1,000 tax increase next year.

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