Skip to content


Payroll tax cut extension stuck in partisan fight

WASHINGTON (Reuters) – With a tax cut for 160 million workers set to expire in less than two weeks, Republicans and Democrats in Congress on Monday were mired in a last-ditch battle over extending it.

In a surprise turnabout, Republicans in the House of Representatives are now pushing for a one-year extension of the payroll tax cut and have rejected a short-term compromise struck by Republicans and Democrats in the Senate at the weekend.

House Republicans had initially expressed concerns over the economic benefits of renewing the tax break, which expires on December 31, and soon-to-expire jobless benefits.

The House is expected late on Monday to defeat the bill passed overwhelmingly by the Senate on Saturday and then seek negotiations on a new compromise measure.

But the path to compromise was far from clear as Democrats took a hardline stance and accused House Republicans of reneging on the deal between their brethren and Democrats in the Senate.

Democratic Senate leader Harry Reid said he was unwilling to reopen negotiations. Almost all senators have already left Washington for the holidays and the Democratic-controlled chamber has no legislative business scheduled until January 23.

The stand-off between Republicans and Democrats raised the specter of a $1,000 tax hike on the average American worker and millions of unemployed losing their benefits. One influential economist told Reuters that failure to extend the tax break heightened the possibility of a U.S. recession in 2012.

The rebellion by House Republicans against the Senate deal, which had the blessing of Senate Republican leader Mitch McConnell, raised fresh questions about Speaker John Boehner’s control over his restive caucus, which has repeatedly balked this year at compromising with Democrats.

At issue is a phone call between Boehner and rank-and-file members on Saturday. A veteran House Republican member, who asked not to be identified, told Reuters Boehner initially backed the Senate deal but back-pedaled after being caught off guard by the angry response of members.

Boehner has since denied flip-flopping on the issue.

Boehner has struggled to control his caucus, which includes scores of Tea Party-affiliated members elected to Congress in the November 2010 elections, propelled by voters furious about a bad economy and government spending.

A House Republican aide, who asked not to be identified, said McConnell kept Boehner informed of last week’s Senate negotiations. But the aide declined to elaborate when asked by Reuters whether the Speaker had pushed back against the two-month extension.

DEEPENING DYSFUNCTION

At least two Republican senators blasted House Republicans for refusing to approve the Senate deal.

“The House Republicans’ plan to scuttle the deal to help middle-class families is irresponsible and wrong,” said Republican Senator Scott Brown.

Senator Richard Lugar said House members must do what is “best for the country” and pass the Senate measure.

Without a deal, workers’ payroll taxes will rise on January 1 to 6.2 percent, from the current 4.2 percent. Some unemployment benefits, now at 99 weeks amid the weak economy, also would begin phasing out early next year, ending benefits for millions of people who have been jobless for an extended period.

The end-of-year fight caps a tumultuous year and will deepen the sense of dysfunction in Washington. This latest battle caught even cynical Capitol Hill watchers by surprise.

Credit rating agencies are already skeptical Washington’s politicians have the political will to steer the country through global economic instability. Americans heading to the polls in 2012 have also lost confidence in Congress, opinion polls show.

For much of 2011, Republicans and Democrats sparred over spending, debt levels and taxes, bringing the government to the brink of shutdown and costing the United States its prized AAA credit rating from Standard & Poor’s rating agency.

Now, some economists are predicting even worse times ahead if Congress fails to renew the payroll tax cut.

Mark Zandi, chief economist at Moody’s Analytics, speaking to Reuters Insider, bluntly warned: “I do think recession odds will rise quite significantly early next year if it is not extended.”

Zandi said most of the impact would be felt in the first half of 2012, at a time when the U.S. economy is most exposed to risks from a debt-riddled Europe and a continuing U.S. housing foreclosure crisis.

If the House formally requests negotiations with the Senate, as expected, Reid will have to decide whether to reverse course and bring senators back to do more legislating.

Before voting to request new talks with the Senate, the House is expected to defeat the Senate-passed bill, according to a House Republican aide.

If Reid then refuses to engage in new negotiations, it’s unclear if lawmakers would find yet another way to avoid having the payroll tax revert to its pre-2011 6.2 percent, at least until early next year when Congress starts its 2012 session.

(Additional reporting by Donna Smith, Kim Dixon and Thomas Ferraro; editing by Ross Colvin and Bill Trott)

Mochila insert follows…

Related Posts with Thumbnails

Posted in Politics.

Tagged with , , , , .

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's happening big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale".

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally IU know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know people in court at the moment for the content they had on their secret private group. Use Telegrams secret chat mode to chat on, or if you prefer Wickr. Or if you need to, buy a dumb phone with nothing for the NSA to hack into if you are that paranoid. Ensure it has no GPS tracking on it and the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install and other ways people can exploit the computer tracking device you carry round with you most of the day.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering bollox) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.

Why?

Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?


0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.



Some HTML is OK

or, reply to this post via trackback.



css.php