–House Approves GOP Plan On Mostly Party Line Vote, 234 to 193
–Bill Goes To Senate Where Dem Leader Says It Will Be Defeated

By John Shaw

WASHINGTON (MNI) – On a mostly party line vote, the House Tuesday
evening approved a Republican-drafted package to extend last year’s
payroll tax cut.

The plan was approved on a 234 to 193 vote and now goes to the
Senate where it faces a cool reception among the upper chamber’s
Democratic majority.

The House Republican package would extend for one year the current
4.2% payroll tax rate for employees and renew unemployment insurance
benefits for workers who have been unemployed for more than six months.
The plan would extend for two years the so-called “doc fix” to prevent
Medicare payments to doctors from being cut by more than 27%.

The House GOP plan would also remove barriers to construction of
the Keystone XL project and delay a new pollution standard for
industrial boilers.

The House GOP package would cost about $195 billion, with about
$120 billion of the cost coming from the payroll tax cut extension. The
package is paid for by a host of spending savings including minor
adjustments to the Social Security and Medicare programs and fees
imposed on Fannie Mae and Freddie Mac. It would also freeze the salaries
of civilian federal workers through 2013.

The White House and most congressional Democrats oppose the plan,
saying it as a partisan bill that includes controversial items such as
the Keystone XL pipeline provision.

Both House Speaker John Boehner and Senate Minority Leader Mitch
McConnell have said the Senate should pass the House GOP’s bill, but
Senate Majority Leader Harry Reid has said the bill will never win
Senate approval.

The Senate is expected to take up the bill as early as Wednesday.
Assuming the Senate defeats the bill, bipartisan talks could begin on a
compromise package.

Congressional leaders hoped to recess for the year on Friday, but
that is likely to slip into early next week.

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

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