–Senate Minority Leader McConnell: Still Many ‘Moving Parts’ To Talks
–Sen. McConnell: All Want One Year Deal; Dispute Over Offsets

By John Shaw

WASHINGTON (MNI) – Senate Minority Leader Mitch McConnell said
Tuesday he’s “confident and optimistic” that ongoing negotiations will
lead to an agreement on a payroll tax cut extension.

Speaking after a Senate Republican party lunch, McConnell said
there are still a lot of “moving parts” to the talks, but added that
there is “broad bipartisan agreement” for a one year extension of the
payroll tax cut package.

He said there continues to be a dispute over paying for the
package, jabbing Democrats because “they don’t want to cut very much.”

McConnell said it’s important to reach an agreement by the end of
February when a temporary package expires.

The House-Senate conference committee to draft a payroll tax cut
package will hold their second meeting Wednesday.

The talks are focused on a $160 billion package to extend the
payroll tax cut for a year, renew unemployment insurance benefits, and
prevent a deep cut in Medicare reimbursements for doctors.

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

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.

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

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