–House Ways and Means Chief Camp Says Package To Cost $160 Billion
–Rep. Camp: Talks on Payroll Tax Cut Have Been ‘Ongoing’ Since Dec
–Senate Finance Chief Baucus: Talks Are ‘Opportunity’ To Boost Econ
–Sen. Baucus: Must ‘Rise Above Politics’ in Tax Cut Talks

By John Shaw

WASHINGTON (MNI) – House Ways and Means Committee Chairman Dave
Camp and Senate Finance Committee Chairman Max Baucus convened the first
meeting Tuesday of the House-Senate conference committee to draft a
payroll tax cut package, with both Camp and Baucus saying an agreement
can be accomplished in the coming weeks.

Speaking first, Camp said a package can be crafted but it must deal
with some key differences between the House and Senate.

Camp said the final package should be for a year, it should be
fully paid for, and should include reforms of the unemployment insurance
program.

Camp said a package to extend the payroll tax cut, extend
unemployment insurance benefits and prevent a deep cut in Medicare
reimbursements for doctors would cost about $160 billion.

He said quiet talks on securing a deal have been “ongoing” since
December.

Speaking next, Baucus said failure to reach an agreement on a
payroll tax cut package would clearly “harm our economic recovery.”

“We need to show we can rise above politics for the good of the
country,” Baucus said.

“This is an opportunity. It’s a major opportunity. Let’s seize it,”
Baucus said.

Senate Minority Whip Jon Kyl said the House-Senate conference panel
should use some of the budget savings considered by the Super Committee
last year to offset the cost of the payroll tax cut extension package.

Kyl said that those talks, although they failed to get an
agreement, were helpful in creating “a lot of common ground.”

Congress in December passed a two month extensions of these
programs, which will expire at the end of February. Both President
Barack Obama and congressional leaders say they want to pass a one year
extension, but there are scores of policy details to resolve as well as
a budget offset package of at least $160 billion.

Funding the package will be complex and politically difficult.

House Republicans recommend paying for the package by extending a
federal employee pay freeze, increasing Medicare premiums for upper
income beneficiaries, and cutting funds from the new health care law.

Senate Democrats prefer to pay for the package by imposing a surtax
on those with incomes over $1 million.

Senate Majority Leader Harry Reid said Tuesday that congressional
Democrats will continue to push for some variation of this surtax.

** Market News International Washington Bureau: (202) 371-2121 **

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