Payroll Tax Battle Heads To Senate

House Republicans were successful in passing legislation Tuesday that would extend payroll-tax cuts to 2013 and would expedite a White House decision on the Keystone XL pipeline. 

The 234-193 vote sends the Republican-crafted bill to Senate Democrats who have arduously opposed the bill and have already signaled the bill would be dead-on-arrival. 

Following the House vote, Senate Majority Leader Harry Reid (D-Nev.) took immediate action and called for a vote in the Democratic-controlled Senate. Republicans’ top senator, Mitch McConnell (R-Ky.), told Reid he needed more time to organize his conference. Reid, in turn, criticized McConnell for blocking a Senate vote on the House’s payroll package. 

A vote in the upper chamber, however, will likely be the House-passed bill’s demise. Senate Democrats said that they will continue to pursue a surtax on millionaires as a pay-for for the payroll-tax holiday, a notion Republicans have argued is counter-intuitive. 

Meanwhile, the White House, which threatened to veto the bill Tuesday, released a statement following the House vote that labeled Republicans as ideologues practicing gamesmanship. 

“This Congress needs to do its job and stop the tax hike that’s scheduled to affect 160 million Americans in 18 days,” White House spokesman Jay Carney said in a statement. “This is not a time for Washington Republicans to score political points against the President.  It’s not a time to refight old ideological battles.”

Moving forward, Congress must act on two key issues; passing extenders and an omnibus bill that keeps the government funded past Friday. However, Republicans have accused Senate Democrats for holding a House-passed, $1 trillion omnibus bill “hostage” until both parties can agree on a “more acceptable” extension of the payroll-tax package. 

Democrats have defended this accusation by voicing concern over the possibility the House would pass its version of the extender and payroll bills then skip town, forcing the Senate to take up the bills without any changes.

Congress now has two days to keep the government funded past Friday and just over two weeks before Americans see their paychecks shrink in 2013.

Obama Attempts To Bridge Support For Jobs Package

With the “functionally obsolete” Brent Spence Bridge at his back, President Obama challenged Republican leaders in Congress to approve his jobs bill that includes over $100 billion for new infrastructure projects and repairs.

Obama admitted that one of the reasons he chose the bridge — which connects Ohio to Kentucky — as his backdrop for today’s pitch, is because of its geographical ties to House Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.).

“[They] are the two most powerful Republicans in government,” he said. “They can either kill this jobs bill, or they can help us pass it.”

Though the president’s $447 billion plan covers a number of areas — including tax cuts and credits, broadband investment and mortgage refinancing for homeowners — it’s the funding reserved for infrastructure projects he focused on today. Obama urged lawmakers to quit squabbling over the need to reign in spending, and approve $50 billion worth of transportation funding included in the bill.

“If you want construction workers rebuilding bridges like this one,” he said, “pass this jobs bill.”

Ohio, in particular, would stand to receive just over $1 billion for highway and transportation projects. The White House says the money would create nearly 14,000 jobs in the Buckeye State, which is plagued by a 9 percent unemployment rate.

Obama argued that aside from the bridge behind him, there are numerous other area transit routes in need of repair.

“I can’t imagine that the Speaker wants to represent a state where nearly one in four bridges is classified as substandard,” he said.

Earlier in the day, Boehner thanked the president for bringing attention to the Brent Spence Bridge, which lies in a district that neighbors the one he represents.

“I know how important the Brent Spence Bridge is to our region,” he said. “I’ve long supported replacing the bridge, and I’m pleased the president is bringing attention to this much-needed project.”

However, Boehner complained that the president’s plan does not put enough emphasis on undoing regulations, which he said are hurting businesses in his state. Boehner also decried Obama’s plan to pay for the bill in part by raising taxes on those earning more than $250,000 per year.

“His plan, in my opinion, will destroy jobs by raising taxes on small businesses and our capital, the key ingredient, I think for job creation in our country.”

Yet, Obama stood by his pay-for proposal, arguing that it appropriately prioritizes a struggling middle class in need of help.

“The Republicans in Congress,” he said, “call this class warfare. Well you know what? If asking a billionaire to pay the same tax rate as plumber or teacher makes me a warrior for the middle class, I’ll wear that charge as a badge of honor.”

McConnell Offers One-Page Alternative To Dem Spending Bill

Senate Minority Leader Mitch McConnell (R-Ky.) has introduced a measure aimed at keeping the federal government funded for a couple more months. McConnell’s continuing resolution would mean that the incoming Congress would be tasked with passing a budget, something lawmakers failed to do this year.

The single-page proposal from the Kentucky Republican is meant to counter a nearly 2,000 page ‘omnibus’ package from Democrats that would fund all twelve of President Obama’s cabinets through the end of the 2011 fiscal year at a cost of over $1 trillion total.

“[Democrats] want us to ram this gigantic, trillion dollar bill through Congress — and they’re using the Christmas break as a inducement to get us to vote for it,” McConnell said during floor remarks on Thursday. “This is no way to legislate.”

Contrary to the Democratic package, which includes roughly $8.6 billion worth of earmark requests from members of both parties, the GOP leader’s proposal is “clean” and would carry over 2010 spending levels. It would keep the government running until February 18.

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"Voice Of America" Heard Loud And Clear

By Samira Sadeque

Republican leaders are being vocal on the heels of Tuesday’s election applauding the American people for ensuring that their voices were heard across the country.

Sen. Mitch McConnell (R-Ky.) said if Republicans and Democrats want to “meet in the middle,” Democrats must learn to listen to the American people. 

“[The voters] yesterday made a clear statement about what they’d like to see done,” McConnell said. “We hope that [Democrats] will pivot in a different direction and work with us on things that the President said he is for, and most of my members are for.”

Ohio Republican and, in all likelihood, the next House Speaker John Boehner said in the aftermath of Tuesday’s victory, the time for action is now.

“This is a time for us to roll up our sleeves and go to work on the people’s priorities: creating jobs, cutting spending and reforming the way Congress does its business,” Boehner said. “Its not just what the American people are demanding, it’s what they are expecting from us.”

The top House Republican touted their “Pledge To America” saying it emphasized focus on the priorities of the American people.

“The new majority of Congress will be the voice of the American people and we clearly expressed that last night,” Boehner said.

Obama Spending Plan Fuels Debate

Congress likely will not take substantive action in the short run on President Barack Obama’s request for $50 billion to be used on infrastructure projects.

Both the House and Senate resume session next week, but for how long remains to be seen. Members are expcted to spend most of their time between now and November campaigning for re-election.

Already, the President is receiving blowback from his speech Monday in which he announced his new plan to create jobs by funding a series of transportation measures.

Senate Minority Leader Mitch McConnell (R-Ky.) said the plan “should be met with justifiable skepticism.”

“We don’t need more government ‘stimulus’ spending,” added House Minority Leader John Boehner (R-Ohio). “We need to end Washington Democrats’ out-of-control spending spree, stop their tax hikes, and create jobs by eliminating the job-killing uncertainty that is hampering our small businesses.”

Democrats have successfully overcome a series of Republican hurdles this year to pass legislation, but given mounting voter discontent over deficit growth it is uncertain how much of an appetite they still possess to attach their names to more spending.

In a conference call with reporters on Monday, one senior White House official said the plan is not an added stimulus, but rather a long-term initiative that would also create jobs quickly, perhaps as early as 2011. However, critics point out that the aim of last year’s monumental stimulus package was also to bring down unemployment in the short-term, a goal that went unmet.