Democrats were practically gleeful Tuesday that they?d gained the upper hand on the payroll tax cut extension after House Republican leaders unexpectedly agreed to prolong the tax holiday without paying for it.
Sensing a strengthened position, Democrats indicated they would up the pressure on Republicans to ensure the rest of the $160 billion package ? renewing unemployment insurance and avoiding a Medicare rate cut for doctors ? passes before the programs expire at the end of this month.
Continue Reading?Let me be clear about what you saw yesterday,? Sen. Chuck Schumer (D-N.Y.) told reporters on Tuesday. ?The Republicans called a full-scale retreat on the payroll tax cut.?
Added House Minority Whip Steny Hoyer (D-Md.): ?My initial reaction is, the Republicans caved because they believed that the public believes that we ought to move forward on this.?
In a surprising about-face, House GOP leaders said Monday that if conference committee negotiations fail, they?ll push an extension of the payroll tax cut through the end of this year without offsetting the cost . The temporary 2 percent tax cut, which benefits 160 million Americans and costs about $100 billion to extent through the end of the year, would be separated from unemployment insurance and the so-called doc fix, Republicans leaders said.
The back-up plan could come to the House floor as early as Wednesday.
Minority Leader Nancy Pelosi (D-Calif.) said Democrats would back the standalone payroll tax cut extension. At the same time, she called on a House-Senate conference committee to reach a deal by Friday on unemployment benefits and the so-called ?doc fix.?
If that doesn?t happen, Pelosi said GOP leaders should scrap the weeklong Presidents Day recess scheduled for next week.
Though House passage of a standalone payroll bill isn?t guaranteed, the Democrats? expected backing dramatically boosts its prospects.
The real guesswork starts once it reaches the Senate.
Schumer didn?t say whether Senate Democrats would support just the payroll tax cut separated from the other two provisions. He said the caucus is not ruling ?anything off the table? in terms getting the extension of unemployment insurance and the doc fix passed.
?In terms of revenues and in terms of mandatory cuts, there?s ample room to get these things done,? Schumer said, who also said renewing jobless benefits without paying for it was also an option.
Senate Democrats also hinted tax extenders such as a research and development tax credit and mass transit benefits could be included in the final deal.
But Sen. Ben Cardin (D-Md.) cautioned that negotiators still have to resolve other sticking points like reforms to the unemployment insurance program proposed by Republicans. Those changes include a requirement that all recipients undergo a GED program in order to receive benefits, and allowing states to mandate drug screening.
?I don?t think it changes any of the other equations here other than the offset politics,? Cardin said.
Earlier Tuesday, President Barack Obama noted ?hopeful signs? in Congress regarding passage of the extension, but still urged the public to pressure lawmakers.
?You can?t take anything for granted here in Washington,? Obama said Tuesday. ?Until you see me sign this thing, you?ve got to keep on speaking up.?
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