Source: Possible deal on payroll tax
House Republicans will hold a conference call at 5 p.m. Thursday amid indications of a possible deal to extend the payroll tax cut before it expires on January 1, a top Republican source has told CNN.
The development comes hours after Senate Minority Leader Mitch McConnell, R-Kentucky, called for a short-term extension of the tax holiday as part of a compromise, increasing pressure on House GOP leaders to end their resistance to such a step.
House Speaker John Boehner, R-Ohio, initially rejected Senate Minority Leader Mitch McConnell’s call, releasing a statement that reiterated his call for negotiators to craft an immediate one-year tax cut extension — something now considered unlikely by most congressional observers.
With nine days until the payroll tax cut is set to expire, bringing a tax increase averaging $1,000 for American workers, the ongoing impasse pitting the House Republican leadership against the White House, congressional Democrats and fellow Republicans is the kind of political gamesmanship that Americans dislike about Congress, President Barack Obama said Thursday.
At issue is whether the House should pass a Senate compromise that extends the lower payroll tax rate for two months. It passed last Saturday by an 89-10 vote, with strong Republican support, after Senate negotiators were unable to agree on a one-year extension.
Boehner instead has been demanding negotiations on a one-year extension, arguing that anything shorter simply prolongs the issue and causes uncertainty for American taxpayers and businesses.
His stance has drawn sharp criticism this week, including an editorial in the conservative Wall Street Journal that said House Republicans had lost the political advantage of advocating tax cuts to Obama and the Democrats.
On Thursday, McConnell’s proposal and calls by other conservative Republicans for the House to accept a short-term extension showed the tide turning against Boehner and his GOP leaders.