House Republicans had a bill to pass the payroll tax cut extension in late December for one year, with the required offsets to pay for them. They were overruled by the Senate, which passed a three months extension and went on Christmas break. The class warfare champion and defender of the Middle Class was then able to blame House Republicans if they didn’t pass the Senate bill. The strategy worked for Obama and the Democratic Leadership in Congress. House Speaker Boehner
and his Republicans ended up being the bad guy and eventually passed the three months extension. Well fool me once “shame on you” fool me twice “shame on you”.
House Republicans have decided on a compromise on the payroll taxcut extension, since the Democrats have not agreed to any offset suggestions by House Republican. This just isn’t worth another fight. Realizing that nothing will change until the election in November and that the Democratic Senate is digging in its heals (I wonder where the “do nothing Congress” really exists), House Republicans have agreed to a compromise that would extend the payroll tax cuts to the end of the year as a stand alone bill.
Instead, House Speaker John A. Boehner (R-Ohio) and
his top lieutenants said they do not want to be held responsible for the tax increase on 160 million workers that would happen if the tax holiday were not extended.
The two sides have been negotiating for weeks but have been unable to strike a deal. Republicans want to continue negotiations over financing the rest of the original legislative package, including an extension of unemployment benefits and a key tweak to maintain Medicare reimbursement rates for doctors, while ensuring that taxes will not rise on workers.
“Because the president and Senate Democratic leaders have not allowed their conferees to support a responsible bipartisan agreement, today House Republicans will introduce a backup plan that would simply extend the payroll tax holiday for the remainder of the year while the conference negotiations continue,” Boehner, House Majority Leader Eric Cantor (R-Va.) and House Majority Whip Kevin McCarthy (R-Calif.) said in a joint statement. Washington Post