CBS/AP/ December 14, 2011, 5:10 AM

Payroll tax cut row threatens gov't shutdown

Senate Majority Leader Harry Reid, D-Nev., (Center) holds a news conference about extending the payroll tax cut with Senate Majority Whip Richard Durbin (Left) and Sen. Robert Casey at the U.S. Capitol, Dec. 7, 2011 in Washington.

Senate Majority Leader Harry Reid, D-Nev., (Center) holds a news conference about extending the payroll tax cut with Senate Majority Whip Richard Durbin (Left) and Sen. Robert Casey at the U.S. Capitol, Dec. 7, 2011 in Washington. / Getty

WASHINGTON - A Republican payroll tax cut bill that sailed through the House despite a White House veto threat is dead on arrival in the Senate, and it will soon be time for talks on a final package, the Senate's top Democrat says.

Senate Majority Leader Harry Reid, D-Nev., made the remarks Tuesday shortly after the House used a near-party line 234-193 vote to approve the measure. The bill has drawn nearly universal Democratic opposition because it would force work to begin on the 1,700-mile-long Keystone XL oil pipeline, which President Obama would rather postpone, and would trim federal spending without forcing the wealthy to contribute as much as Democrats want.

The measure would keep 160 million workers from seeing their payroll tax jump on Jan. 1 from this year's 4.2 percent back to its normal level of 6.2 percent — a $1,000 difference for a family making $50,000. It would also renew expiring extra benefits for long-term jobless people and head off a cut in doctors' Medicare reimbursements, a reduction that could prompt some to stop seeing elderly patients who use that program.

Reid says he will schedule a vote shortly on the House-passed bill to underscore its irrelevance — a vote that should start the clock ticking on what stands as the year's final, high-stakes partisan faceoff.

"It was dead before it got to the Senate," Reid said of the House legislation. "The Senate will not pass it. The sooner we demonstrate that, the sooner we can begin serious discussions on how to keep taxes from going up on middle-class Americans."

But the payroll measure isn't the only one lawmakers plan to tackle before beginning their year-end vacation, presumably before Christmas.

Bipartisan lawmakers have reached agreement on a $1 trillion measure financing scores of government agencies through next September, a bill that would avert a federal shutdown this weekend when temporary funding expires.

Democrats, though, are refusing to let the legislation move through Congress until the two parties broker a deal on the payroll tax measure. Democrats hope that will build pressure on Republicans to quickly reach agreement on the payroll tax bill, a tactic House Speaker John Boehner, R-Ohio, called "outrageous."

Boehner taunted Senate Democrats after the House passed its payroll tax legislation.

"The Senate can take up our bill, they can pass it, they can amend it, they can move their own bill," he told reporters, standing beside a video clock counting down the seconds until the payroll tax boost that would otherwise occur Jan. 1. "But it is time for the Senate to act. Democrats who run the United States Senate can't continue to hide and sit on the sidelines."

Boehner also said that when the Senate acts, "we'll begin to then take a look at where we can find common ground."

Meanwhile, the House also planned to debate a $662 billion defense bill on Wednesday that charts policy for military personnel, weapons systems and the wars in Iraq and Afghanistan, plus national security programs in the Energy Department. House and Senate negotiators wrapped up the bill Monday night after including revisions that address administration concerns over handling of terrorism suspects.

The bill would require that the military take custody of a suspect deemed to be a member of al Qaeda or its affiliates who is involved in plotting or committing attacks on the United States, with an exemption for U.S. citizens. The legislation also would deny some suspected terrorists, even U.S. citizens seized within the nation's borders, the right to trial and subject them to indefinite detention.

Also Wednesday, the Senate was expected to reject proposals to amend the Constitution to require a balanced federal budget.

The Senate seems sure to fall short of the two-thirds majority required to amend the Constitution, a margin the House failed to muster several weeks ago as Republicans there failed to push a similar amendment to passage. The Senate will vote on dueling Republican and Democratic proposals.

Republicans say work on the Keystone oil pipeline, proposed to run from the tar sands of Alberta, Canada, to Texas oil refineries, would create 20,000 or more jobs. Opponents say the real figure is more like 3,500.

Obama cited a need for studies of how the pipeline could avoid harming fragile lands in Nebraska when he announced last month that work would be delayed until after next year's elections. The GOP bill would give the president 60 days to act or the needed work permit would be automatically granted.

Another provision that Republicans say would create jobs would derail a proposed federal environmental rule aimed at curbing some industrial pollution.

To cover the payroll tax bill's overall cost, which exceeds $180 billion, the measure ignores Democratic proposals to slap a surtax on people earning more than $1 million annually.

Instead, Republicans would raise the money by continuing a pay freeze on civilian federal workers and requiring them to contribute more to their pensions; making higher-earning seniors pay steeper premiums for Medicare; cutting funds from Obama's 2010 health care overhaul; raising some federal fees; and selling portions of the broadcast spectrum.

The Senate version of the payroll tax legislation may also renew some tax provisions that would otherwise expire Jan. 1, including one providing tax breaks to mass transit commuters.

© 2011 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
246 Comments Add a Comment
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Esquirew says:
A shutdown would benefit the economy long-term.

For now, a 60 day shutdown without pay and without taxpayer contributions for healthcare and retirement would achieve more than the games-playing being fought over by party leaders.

Put them all out of a job for 60 days, then allow them to return to work to see if they can work together.

If NOT, give them another 60 day unpaid vacation.

Ultimately, we need a 15% or more reduction in govt. employees which should be [ and could be ] achieved via attrition.

Until said "reduction in force" is achieved, there shall be NO INCREASES in salary or pay of any kind, including WAMs.

Treat govt. employees as retirees are treated >>> NO COLI .. I think this will be the 3rd consecutive year which gives NEW MEANING to FIXED INCOME.
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taxDemRich2Now says:
To bad the rich greedy elite who have been overtaken by Lucifer and care more about money (dirty money im sure) than a Human being could somehow be sucked up by Alien spaceships and took off to another planet. Maybe some paradise type place where they can continue to feel the whole universe revolves around them. And continue to help them to forget we all come from the same place (they would have each other) They wouldn't have that feeling of power and stepping on People on this other planet so maybe they could substitute that for something else ya know more of something they don't deserve perhaps?

They wouldn't have to lie or cheat, just give it to them. Might take some of the fun out of it, nothing is perfect. Oh unless you're in heaven that is perfect, but Lucifer doesn't guide those to heaven. The devil is taken over the world, glad we still have freedom fighters out there " Ron Paul " and a few others , the good guys are out numbered, but I admire those who stay good and fight for what they believe no matter the cost. The good Lord approves.

OH NO LETS NOT TAX THE RICH...I might lose sleep over that one. Those who don't have homes to lose sleep in can still lose sleep. The rich are such victims and everybody wants a piece of their money, understandable though because they have all of the money and im sure they screwed many humble middle class folk out of money. I believe it is them who want something for nothing, and they are getting it, even if it's illegal, it's ok they pay off the right People, ya know the ones who think everybody is a terrorist and watch over you. Seems like maybe they are the ones who need to be watched, who has done the most damage to this country? Banks and Politicians as far as I know have. I don't think it's the computer geek who lives in his mothers basement looking up conspiracy stuff on the internet, good to watch him though. Crooks don't like well informed citizens who can connect the dots. Maybe that's why they watch you? If you become a problem for them (even though you are a patriot and broke no laws and care for people) they can always frame ya, or just take you out of the picture and call it " Secret " wonder if that's why they want to get people use to assassinating American citizens without the constitution protecting them. Ya know a fair trial. Way it suppose to be. Something wrong with this world today.
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lorenzoxM says:
"Instead, Republicans would raise the money by continuing a pay freeze on civilian federal workers and requiring them to contribute more to their pensions; making higher-earning seniors pay steeper premiums for Medicare; cutting funds from Obama's 2010 health care overhaul; raising some federal fees; and selling portions of the broadcast spectrum."

PERFECT SOLUTION to MIDDLE CLASS PAYROLL TAX CUT. SORRY DEMO-RATS you lose on this issue, BIG TIME.
And, I'm no friend of the REPUG-NICANS, either.

The FORKED TONGUE Serpent Obama, and his Democratic Capitalist Vampire Zombies
who support "The UNION CARD CHECK BILL," and REFUSE to PROSECUTE
WALL STREET DERIVATIVE BANKERS in OPEN COURT because they lead straight to the DNC, need to go down
HARD and in a HURRY, next year.

DERIVATIVE BANKERS and GOVERNMENT UNIONS need to be DONE IN !!!
OBAMA is DOING NEITHER, he has SOLD OUT with his $ 1 BILLION DOLLAR campaign war chest to those ABOVE, who would destroy whats left of the NON-Union, NON-Portfolio, NON-trust fund Citizens.
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moretruthnow says:
Republicans constantly standing with the corporate elite. Republicans always doing the bidding of Grover Norquist against fair taxes for the super wealthy. Republicans against the environment. Republicans against the middle class and working poor having jobs. Republicans always lying, backstabbing and standing against helping to solve the mess they left after eight years of corruption and incompetence.
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LittleDonC says:
We the people need to impeach both Reid and Durbin!!!!!!!!!!!! That would be great for America!!!!!!!
God Bless America!!!!!!!!!!!!!!!!!
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taxDemRich2Now replies:
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Impeach 95% of them what world you living in.
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ffarrag-2009 says:
The media are playing their role again, the same one they played every election, the candidates are playing their role again, the same one they played every election, and the voters are playing their role again, the same one they played every election, therefore, why would anyone expect a different results!
The media always has a field day with elections, revenues, ratings, spotlight competition, first on the air news.............etc.
The candidates are doing what they always do, do anything say anything promise anything in order to win, the goals justifies the means.
And finally, the voters who never learn their lessons, play along, expecting that this time, just this time may be the results will be different, just maybe they will get something of all the things they were promised by the candidates, but because they - the voters - are either naive and gullible or just plain dumb, they will get the same thing, which is nothing.
Can anyone remember when the last time politicians solved a problem, really solved a problem; any problem in the past half a century at least , they promise to solve the same problems, form spending to unemployment, form taxes to deficit, from health care to education................etc, and how many times they resolve anything or fix anything..............NONE.
Let them take the-pledge this time, hold them responsible and accountable to you the voters, weed them out and force a time limits on them, see "the- pledge" dot com, find it on Google.
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noloyalisti says:
The giant corporations and the filthy rich who run them (look at the criminal debacle caused by the Wall Street Banksters in 2008) have seized the government for the Top 1%. At the expense of the 99%. They MUST be stopped! And soon.
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GoUnion86 replies:
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Dan hates everyone who doesn't agree with him 100%. No tolerance, no empathy, no compassion.
moretruthnow replies:
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Dan go hire a lot of people.
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leithflood says:
HELP, I'M HAVING A NIGHT-MARE. I SAW THE CONGRESS ALL WORKING TOGETHER FOR AMERICA, AND THE PEOPLE. THEN MY ALARM SOUNDED, AND I FELL OUT OF BED. NOTHING HAD CHANGED. OBAMA WAS STILL THE PRESIDENT, AND I WAS STILL OUT OF WORK. I'M NOT BUYING THE CLASS ENVY THING, NOT ONE BIT. HOPE AND CHANGE WERE JUST WORDS, NOTHING ELSE. HOW LONG CAN YOU GO ON BLAMING BUSH. AT SOME POINT THE CONGRESS AND THE WHITE HOUSE MUST COME TOGETHER AND FIX OUR ECONOMY. IT'S BECOMING VERY CLEAR THIS WILL NOT HAPPEN. TO MANY EGOS IN THE WAY. I PURPOSE AN ARBITRATOR BE CALLED IN, TO SETTLE THE PROBLEMS. THEY WANT TO ACT LIKE CHILDREN, WE SHOULD TREAT THEM LIKE CHILDREN. I CANT WAIT TO GET TO SLEEP TO-NIGHT AND DREAM OUR COUNTRY IS BACK ON TRACK AND THE WORLD IS GOOD AGAIN. I GOT RID OF THE ALARM CLOCK. GOOD NIGHT.
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noloyalisti replies:
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Our only option is to get together to form a second political party in America. It's been far too long. And too many people have been ruined or have suffered at the hands of the very rich and the giant corporations they run.
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noloyalisti says:
Empire is exactly correct you have to have a fair deal between management and labor, it's a two way street. Without strong government oversight, capital will attain power and the free market will spiral out of control.

That is the current state of America and the world. The people with capital do not pay their fair share and are exploiting labor for excess profits. And now you know why there is the Occupy Together 99% Movement. Without some radical change we are ALL done for (except the Top 1%).
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Zann-Zel says:
Interesting quote:

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration." - Abraham Lincoln

Wasn't he a republican?
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Zann-Zel replies:
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Before "capital existed to fund the first paycheck" - they shared in the harvest! They brought home food for their own families. Or they shared in the protection of the wall they were building.

Before capital - people SHARED.
What a concept!

And George its kinda hard to go "hand in hand" when they move operations to the other side of the world!
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