CQ TODAY ONLINE NEWS
Jan. 25, 2012 – 12:07 a.m.
New Negotiations on Payroll Tax Off to a Slow Start
By Sam Goldfarb, CQ Staff
House and Senate negotiators displayed sharp partisan divisions and few signs of compromise Tuesday during the first meeting of the conference committee charged with preserving payroll tax relief for workers through the end of the year.
With just over a month to resolve differences that led to a year-end showdown and a short-term extension of the payroll tax cut, Republicans and Democrats remain far apart on how to pay for legislation expected to cost at least $160 billion.
In addition to renewing a reduction in the Social Security payroll tax enacted in December 2010 (PL 111-312), lawmakers want to continue some form of long-term jobless benefits and a Medicare formula that prevents cuts in payments to doctors. Absent congressional action, each of those programs will expire at the beginning of March, potentially dealing a blow to the economy’s recovery.
Congress set up the conference committee in December at the same time it cleared a bill (PL 112-78) extending the payroll tax cut, jobless benefits and Medicare reimbursement schedule for two months. Conferees are meeting on a year-long extension bill (
At the outset of Tuesday’s meeting, House Ways and Means Chairman
For the remainder of the one-and-a-half-hour gathering, relatively little of substance was discussed, as lawmakers laid out their broad goals in opening statements. All agreed that time is short, the stakes are high and bipartisan cooperation is necessary in order to reach a solution.
Otherwise, the differences between the two parties were stark.
Taxes Still a Sticking Point
Carrying over arguments from the end of the year, Democrats said the cost of the extension package should be partially offset through a tax increase on high- income earners or corporations. They also warned against scaling back unemployment benefits, as Republicans have advocated, and said the panel should at least consider not paying for an extension of unemployment benefits, as has happened in the past.
Republicans, for their part, said tax increases remain unacceptable and that the entire package should be deficit-neutral. Several Republicans, including Sen.
Echoing the view of Senate Majority Leader
But Rep.
Little Change in the Rhetoric
New Negotiations on Payroll Tax Off to a Slow Start
After a year dominated by debate over fiscal issues, the familiarity of Tuesday’s discussion was not lost on the members of the conference committee.
“I almost feel like I’ve seen this movie before,” said Rep.
And while some lawmakers tried to be optimistic about the challenge facing conferees, Sen.
Camp said the panel will most likely meet again on Feb. 1, when members will try to decide for how long to extend the expiring programs. In the meantime, private discussions will take place, Camp said, although he said that he had not yet scheduled any formal meetings with other Republicans.