House, Senate make payroll tax cut deal

Updated: 6:38 p.m. ET

House Speaker John Boehner said Thursday that his fellow GOP congressmen have agreed on a deal to extend for two months the payroll tax cuts that would have expired at the end of the year. The announcement ends yet another episode of political brinksmanship in Washington that has contributed greatly to Congress' abysmal approval ratings.

The agreement allows the House to adopt the Senate's version of the two-month extension, albeit with some face-saving tweaks. The extension would begin on Jan. 1. In addition to language about jobless benefits, the agreement includes a provision expediting the review of the controversial Keystone XL oil pipeline.

Boehner said he expects a vote to pass the legislation will occur "before Christmas."

"I think our members waged a good fight," Boehner said. "We were able to come to an agreement. We were able to fix what came out of the Senate."

There is a chance the deal could get derailed when Boehner seeks a "unanimous consent" vote on the deal, which would require every single GOP House member - even the angry ones - to agree. If any single congressman objects, that could require the whole chamber to reconvene after Christmas for a formal vote.

CBS News correspondent Nancy Cordes reports that, as they had been deserted by Senate Republicans and derided by Democrats, House Republicans believed they had no choice but to back down on their earlier objections to the deal.

The new bill will keep the payroll tax rate at its current 4.2 percent instead of the previous 6.2 percent. It also will extend unemployment benefits, continuing to give people who've been out of work up to 99 weeks of unemployment checks.

As part of Thursday's agreement, House Republicans extracted a promise that the Senate will appoint negotiators -- just as they have -- to immediately work out a year-long deal when Congress returns in January.

A House GOP aide told CBS News earlier in the day that the House would accept a new bill reflecting the two-month extension previously passed in the Senate, but would add language protecting small businesses from costly new reporting requirements in the Senate bill.

President Barack Obama said he welcomes a deal on extending a payroll tax cut and congratulating Congress for ending its "partisan stalemate."

The president issued a statement Thursday evening moments after Boehner announced that House Republicans were reversing course and accepting a two-month extension agreed to by the Senate and supported by the president.

Obama says the deal, which also extends unemployment benefits, is good news just in time for the holidays and the right thing to do for American families and the economy.

And he is thanking Americans who pressured Congress to get it done.

Senate Minority Leader Mitch McConnell, whose urgings may have pushed House Republicans to compromise, said: "With today's agreement between the Speaker and Leader Reid, working Americans can breathe a sigh of relief knowing that their taxes will not go up at the end of the year and that the President will have to finally decide on whether to move forward on a pipeline project that would create thousands of American jobs."

Boehner met with House conferees and Rep. Eric Cantor, R-Va., Thursday afternoon, and they gave the speaker their blessing for him to reach an immediate resolution with Reid. Boehner then appointed Rep. Dave Chairman Camp, R-Mi., to hammer out the details of the legislative fix to the language in the Senate bill with Democratic Senator Max Baucus.

This afternoon, Boehner informed House leaders over the phone that he intended to reach out to Reid for a possible deal, and proceeded with steps aimed at setting up the conference call with House Republicans. 

Reid accepted Boehner's proposal, and the House is scheduled to be in pro forma session at 10 a.m. Friday -- which means the House could pass it by unanimous consent.

House Republicans had argued that the Senate bill - which was negotiated in a bipartisan effort by leaders Mitch McConnell, R-Ky., and Harry Reid, D-Nev., and which sailed through the chamber last weekend with broad bipartisan support - is a short-term fix for a long-term problem.

As late as Thursday morning, Boehner appeared to be sticking to his guns on the matter, even while fellow Republican McConnell urged House lawmakers to pass the Senate bill.

[ajvw]

At the risk of offending my liberal friends;
Merry Christmas to all and wishing you a prosperous self-sufficient New Year.

[skyk801]

ajvw, why would you say something like this? It hasn't been Liberals who have been, for THREE DECADES, attempting to demonize you.

[nottblu]

no it's uninformed partisan bigots like you skyk.

[RobAla]

Whether the pipeline deal would create 6,000 or 20,000 jobs, it would reduce the cost of oil for Americans and it would reduce our dependence on middle-eastern oil. It is ridiculous that President Obama has not agreed to this already. No one should have felt it necessary to link this pipeline to any other bill. It should be a done deal.

As for the 2 month deal, it is a remarkably stupid idea. Who makes a law that lasts for two months? Think about the negative impact on business having to make adjustments to payroll and accounting systems for only a two month situation. Think about the complications to doing taxes at the end of the year. For two stupid months??????

When I heard that Democrats wanted to defund Social Security and call it a tax cut, I asked myself why in the world would they be in favor of such a nutty idea. After I found out that it would be paid for by a year long increase in taxes on home mortgages I understood. This was about a tax increase all along. Whether the payroll cut in Social Security funding stays or goes away, the Democrats will probably have a permanent tax increase on home mortgages. But who in their right mind thinks that the housing market is healthy enough for a tax increase?

What a stupid mess. Social Security has money until 2016, and then it will begin to suck wind. By 2035, it will be bankrupt. Instead of restructuring Social Security so that it will be healthy for a long time, politicians are playing games with it. There is no way anyone should be playing around with defunding Social Security, and there is no way that anyone honest can call a year long tax increase on home mortgages a tax cut for Americans.

This is all a total load of crap. We have serious problems, and Washington is run by a pack of clowns. The Senate began this dumb idea, the media played along with it, and pushed the House into it.

[myopinionpal]

Alot of people keep saying that the Keystone Pipeline will bring down prices here thats what the GOP want you to think. Every drop of that oil will go on the open market to be sold for a hefty profit, oil companies are in business to make tons of money.They could care less about helping you at the pump with cheap prices.

There are 1500 or more wells in the Gulf of Mexico and gas prices are still high I don't think a single pipeline will bring down gas prices if 1500 wells could not do it.

[skyk801]

myopinionpal, you are so very right. There's so much Gasoline available in this nation right now that it's being exported and prices have gone up. I just do not see how we can afford to continue to buy into what the Republican's are selling, given the REALITY that they ALWAYS say what is necessary to help the Rich and Big Oil.

[baileyccc]

Boehner and the clowns he runs with better get all the air time they need, because it will be over November 2012.

[skyk801]

Festivus-For-Us, when you SAY you are coming to Washington to work WITH the other Representatives there. When you say you are coming to Washington to create Jobs and Govern and then DO NOTHING but take the Economy Hostage, time after time, there's a pretty good chance you are going down.

[LawyersGuns-n-Money001]

Hey Boehner, how about washing that crow down with a nice chianti.

[myopinionpal]

Alot of people keep saying that the Keystone Pipeline will bring down prices here thats what the GOP want you to think. Every drop of that oil will go on the open market to be sold for a hefty profit, oil companies are in business to make tons of money.They could care less about helping you at the pump with cheap prices.

There are 1500 or more wells in the Gulf of Mexico and gas prices are still high I don't think a single pipeline will bring down gas prices if 1500 wells could not do it.

[occupy_cbs]

Lou239: "I will certainly be working harder to get the Tea Party stronger - even into a 3rd Party if necessary!"



Better get busy since it's fading fast!


More Now Disagree with Tea Party - Even in Tea Party Districts

Since the 2010 midterm elections, the Tea Party has not only lost support nationwide, but also in the congressional districts represented by members of the House Tea Party Caucus. And this year, the image of the Republican Party has declined even more sharply in these GOP-controlled districts than across the country at large.

In the latest Pew Research Center survey, conducted Nov. 9-14, more Americans say they disagree (27%) than agree (20%) with the Tea Party movement.

http://www.people-press.org/2011/11/29/more-now-disagree-with-tea-party-%E2%80%93-even-in-tea-party-districts/

[rationall7]

No wonder the tea party is out of touch with the 99% The tea party is a ploy to gather votes just like the morel majority was used.

[rationall7]

Why did it take the so called "Party of Tax Cuts" so long to decide on a "Tax Cut Extention" for the "Working Class" so long compared to their more enthusiasm for the "Wealthy Tax Cut Extention"

because they placed a "Pledge" over their "Oath to Office to The American People"(majority= will of the people) the republicans are hoe's

[starving1968-3]

by RobAla December 22, 2011 9:56 PM EST
Whether the pipeline deal would create 6,000 or 20,000 jobs, it would reduce the cost of oil for Americans and it would reduce our dependence on middle eastern oil. It is ridiculous that President Obama has not agreed to this already.







It's not going to reduce the cost of oil in this country, because the American oil cartel IS NOT going to reduce the price they charge us - the customers.

They can F--- us, so they are going to.

Look at gas prices now.... oil was at $120 a barrel and gas was $3.90 a gallon.
Now it's $80 a barrel and were paying $3.65 a gallon.
Oil is 33% cheaper, yet the cost of gas drop 4%.

You don't have to be a math major to figure out "they're f---ing us".

[rationall7]

Transportation of oil can be done above ground by high speend rail and at the same time moving freight a 2 for 1 also any leaks from freight (crash) is easily spotted (vs) underground leak seeping into the water table.

Underground oil leak through a pipe line = oil drinking water.

[starving1968-3]

Obama backed you into a corner like scared little beotches!!

Hilarious!!!

[nottblu]

Well that explains why you are an obama apologist "homie"

[rationall7]

The conservatards avoided totally rejection by the 99% in the short term, in the future term they are toast!