POLITICS

Payroll tax cut vote set for Friday

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WASHINGTON (AP) — Capping a full retreat by House GOP leaders, Congress will convene Friday in hopes of approving a stopgap measure renewing payroll tax cuts for every worker and unemployment benefits for millions — despite serious opposition among some tea party Republicans.

President Obama could sign the bill as soon as Friday. (Photo: Associated Press)

Friday's unusual session, if all goes according to plan, will send a bill to President Barack Obama to become law for two months and put off until January a fight over how to pay for the 2 percentage point tax cut, extend jobless benefits averaging around $300 a week and prevent doctors from absorbing a big cut in Medicare payments.

Those goals had been embraced by virtually every lawmaker in the House and Senate, but had been derailed in a quarrel over demands by House Republicans for immediate negotiations on a long-term extension bill. Senate leaders of both parties had tried to barter such an agreement among themselves a week ago but failed, instead agreeing upon a 60-day measure to buy time for talks next year.

Boehner's decision to cave in draws critics

The decision by House Speaker John Boehner, R-Ohio, to cave in to the Senate came after days of criticism from Obama and Democrats. But perhaps more tellingly, GOP stalwarts like strategist Karl Rove and the Wall St. Journal editorial board warned that if the tax cuts were allowed to expire, Republicans would take a political beating that would harm efforts to unseat Obama next year.

Friday's House and Senate sessions are remarkable. Both chambers have recessed for the holidays but leaders in both parties are trying to pass the short-term agreement under debate rules that would allow any individual member of Congress to derail the pact, at least for a time.

The developments were a clear win for Obama. The payroll tax cut was the centerpiece of his three-month, campaign-style drive for jobs legislation that seems to have contributed to an uptick in his poll numbers — and taken a toll on those of congressional Republicans.

Most preferred one-year extension

Obama, Republicans and congressional Democrats all said they preferred a one-year extension but the politics of achieving the goal, particularly the spending cuts and new fees required to pay for it, eluded them. All pledged to start working on that in January.

"There remain important differences between the parties on how to implement these policies, and it is critical that we protect middle-class families from a tax increase while we work them out," Senate Majority Leader Harry Reid, D-Nev., said.

House GOP arguments about the legislative process and what the "uncertainty" of a two-month extension would mean for businesses were unpersuasive, and Obama was clearly on the offensive.

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