After days of wrangling a deal has been reached. House Speaker John Boehner has issued a statement this afternoon, confirming the agreement reached with Senate Majority Leader Harry Reid. A conference call of House members is scheduled Thursday evening to finalize the arrangement.
objected to the Senate bill and held out for a one year payroll tax cut extension. Obama using the White House as a Propaganda machine, portrayed himself as the champion of the middle class and used a divide and conquer approach. Yesterday the White House asked Americans to write in on a website to describe what $40 meant to them. Obama used the information this morning at a press briefing, with Americans in the background setting, gloating what it meant to Americans. Using a Rhode Island man as example, he aid an extra $40 buys enough heating oil to keep his family warm for three nights, and another from a teacher in the District who said she uses the money to buy supplies for her fourth-grade class. The White House also used e-mail and twitter to put the word out.
The President went shopping on Wednesday with his dog Bo and bought three pizzas, touting that this is what $40 will buy.
The bottom line is that the Payroll Tax Cut Extension will take $140 Billion out of the Social Security Trust Fund if extended for the full year and has already taken that amount from the fund for 2011.
Senator Mitch McConnell, the Senate Minority Leader urged John Boehner and the House Republicans to pass the Senate bill with the caveat that the one year extension would be negotiated early next year.
Most Republican politicos and the Wall Street Journal assessed the House’s approach as a lose lose situation. Republicans were portrayed as willing to cut taxes for the rich, while stalling on tax cuts for the middle class. In reality a real tax cut would have been an across the board cut for all Americans.
While the exact deal is not known, House Speaker John Boehner issued a statement that infers that a deal has been reached between him and Senate Majority Leader Harry Reid, which would extend the payroll tax cut extension, without imposing a complex reporting burden unintentionally on small business job creators. Senator Reid in a statement said, “I look forward to appointing members of my caucus to continue negotiations towards a year-long agreement.”