House Balks At Senate Payroll Package, Calls For Conference

UPDATE — House Speaker John Boehner (R-Ohio) called on Senate Democrats and President Obama to remain in Washington throughout the holidays to “work out our differences” and extend a payroll tax holiday for one year rather than approving a temporary, two-month extension.

“We’ve done our job, all we need now is to resolve our differences,” Boehner said Tuesday shortly after the House diapproved of a Senate bill to extend the payroll tax holiday. “There’s no reason we can’t do this in short order.”

Boehner also made clear, that despite previous reports that the House would adjourn following Tuesday’s votes, House GOP leadership and a handful of negotiators will remain “ready and able” to finalize a year-long extensions before Jan. 1. According to the Speaker, Reps. Kevin Brady (R-Texas), David Camp (R-Mich.), Renee Ellmers (R-N.C.), Nan Hayworth (R-N.Y.), Tom Price (R-Ga.), Tom Reed (R-N.Y.), Fred Upton (R-Mich.) and Greg Walden (R-Ore.) would be on hand and in Washington through the end of the year.

The House Speaker questioned the willingness of President Obama to increase his involvement by demanding Senate Democrats reconvene to hash out an agreement.

“Now it’s up to the president to show real leadership,” Boehner said. “He said that won’t leave town for the holidays until this bill is done. I think President Obama needs to call on Senate Democrats to go back into session move to go a conference, and to sit down and resolve this bill as quickly as possible. We’ve done our work for the American people and now it’s up to the president and Democrats in the Senate to do their obs as well.”

This story was updated at 2:34p.m. EST…

UPDATE — Just before 1:00p.m. EST Tuesday, the House voted 229-193 to disapprove of the Senate’s two-month payroll holiday extension, calling the upper chamber back to conference to work out their differences.

The vote puts pressure back on Senate Democrats to reconvene even though Senate Majority Leader Harry Reid (D-Nev.) has already said the upper chamber was done with votes for the year. Reid took to his Twitter account to respond to the House’s latest vote.

“Happy to cont. negotiations on a yearlong deal as soon as #House passes the #Senate’s compromise, & prevents tax hike from hitting mid class,” Reid tweeted.

Reid’s statement indicates that Senate Democrats will not likely return to conference with House Republicans.

According to a Democratic aide who spoke on the condition of anonymity, following the lower chamber’s scheduled votes Tuesday, House members plan to follow suit with the Senate and adjourn for the holidays, leaving no window for a conference to actually take place.

“No conference, no nothing, everything expires,” the Democratic source said.

This story was updated at 1:26p.m. EST…

WASHINGTON - The House is expected to vote Tuesday on a plan that would send a Senate-passed, two-year payroll tax cut extension into conference, a procedure that would allow Republicans to reject the upper chamber’s bill without actually voting against it. 

Though House Republicans will not formally reject the Senate-passed extension with a vote, GOP leaders have said that the move to conference with the upper chamber would serve as a vote against the Senate’s bill. 

House Republicans are vehemently opposed to the duration of the two-month extension drafted in the Senate. House Majority Leader Eric Cantor (R-Va.) has said it is an attempt to “kick the can down the road for 60 days” and Rep. Jeb Hensarling (R-Texas) has said the “two-month bill would do more harm than good.”

Despite an 89-10 vote in the upper chamber and approval from Senate Minority Leader Mitch McConnell (R-Ky.), House Republicans have opted to bring the bill to a conference in an effort to reach a deal that would extend the payroll tax package for a full year rather than accept a two-month-long extension. Democrats are taking the opportunity to label House Republicans as obstructionists.

“Speaker Boehner should allow an up-or-down vote on the compromise that Senator McConnell and I negotiated at Speaker Boehner’s request, and which was supported by 89 Republican and Democratic senators,” Senate Majority Leader Harry Reid (D-Nev.) said in a statement. “It would be unconscionable to block a bipartisan agreement that would protect middle-class families from the thousand-dollar tax increase looming on January 1. It is time for Speaker Boehner to follow through.”

Reid has indicated that he will not re-open negotiations over the duration of the payroll tax holiday until the House passes the two-month extension. 

Pelosi: GOP On Their Own In Omnibus Vote

House Minority Leader Nancy Pelosi (D-Calif.) warned GOP leaders in the House that if they plan to vote on a $1 trillion omnibus bill this week, they can do it without the support of House Democrats.

“I hope they have the votes for it, because if they don’t’, they won’t be getting any cooperation from us,” Pelosi told reporters at her weekly press briefing. 

House Republican leaders are expected to bring the omnibus to the floor without Democratic support. This could be an uphill battle for House Speaker John Boehner (R-Ohio) who has had trouble winning the votes of some rank-and-file Republicans on a number of occasions throughout the year. 

With the end of the week fast approaching, the threat of yet another government shutdown looms over Congress. One option that would essentially serve as Plan B for Congress is the potential for passing a short-term continuing resolution that would keep the government funded into next week, giving the legislative body more time to work out their differences with the current payroll package.

Pelosi said that a shutdown was, in fact, possible but that there were many avenues available that would work to avoid it. 

“It’s only a decision that Republicans have to make that they want to avoid a shutdown by coming to the table and coming to their sense about what is fair to get the job done, to get results for the American people, instead of creating a crisis,” Pelosi said. 

Pelosi stood by the White House’s threat to veto the bill, saying “our caucus supports the president if he wants to veto the bill because of some of the provisions that are in there. We won’t be voting for a bill that has them.”

“It’s like someone saying to her fiancé, ‘Yes, I’ll finally marry you, but I can only do that on Feb. 30,’” Pelosi said. “That day is never coming, nor is the day coming when the president will sign the that Republicans passed.” 

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.