–In Tactical Skirmishing, Democrats And GOP Derail Rival Plans
–Senate Democratic Plan Falls 10 Votes Short of 60 Votes
–Senate Republican Plan Falls 38 Votes Short of 60 Votes

By John Shaw

WASHINGTON (MNI) – The Senate’s partisan stalemate on extending the
payroll tax cut continued with a vengeance Thursday as Republicans
blocked a Democratic plan and Democrats blocked a Republican plan.

Under Senate rules, motions to consider the Democratic and
Republican payroll tax cut extension plans required 60 votes.

The Senate Democratic plan got 50 votes while the Republican plan
got only 22 votes. Both fell well short of the requisite 60 votes.

The Senate Democratic plan would cost about $180 billion and would
extend the payroll tax cut for a year. It would be paid for by a surtax
of 1.9% on individual income over $1 million that would be applied in
2013 and expire in a decade. The plan also secures $38 billion by
increasing fees on Fannie Mae and Freddie Mac.

Last year, the White House and Congress agreed on a tax-cut package
that included reducing for one year the employee-paid share of the
Social Security tax from 6.2 percent to 4.2 percent.

The Senate Democratic plan would have reduced the employee payroll
tax to 3.1 percent.

The Senate Republican plan would have extended last year’s payroll
tax cut for a year and would have funded it by various entitlement
savings and with a freeze on federal salaries and hiring.

The House is expected to consider next week a plan that would
extend last year’s payroll tax cut, extend unemployment insurance while
overhauling the program, and prevent Medicare reimbursement cuts for
doctors.

The House GOP plan would cost about $200 billion.

House Speaker John Boehner said Thursday the House Republican
payroll tax cut extension bill will be “fully paid for” and will include
“some of our jobs initiatives.”

He said the bill will include a delay in a new pollution standard
for industrial boilers and the removal of impediments to construction on
the Keystone XL pipeline.

Congressional leaders have said they hope to adjourn for the year,
Dec. 16 a week from Friday. But the deadlock on the payroll tax cut
extension could push back this adjournment date.

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

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