Shutdown Averted As Dem, GOP Leaders Hash Out Payroll Tax Deal [View all]

[kpete]

Shutdown Averted As Dem, GOP Leaders Hash Out Payroll Tax Deal

House and Senate leaders have reached an agreement on a deal to avoid a government shutdown, and are nearing a separate deal on legislation to renew a soon-to-expire payroll tax cut, unemployment benefits, and a “doc fix” measure to prevent a steep, automatic pay cut to Medicare physicians.

The breakthrough comes just over 24 hours before funding for the government was set to run out, though the principals continue to squabble over policy measures and payfors attached to the payroll bill.

Democrats have officially dropped their push for a small surtax on millionaires as one means of offsetting the cost of the bill. And it’s unclear what they got in return, aside from a pledge from Republicans not to jam Democrats with their partisan payroll tax bill.

With the millionaire surtax gone, most of the cost of the bill will likely be paid for with budget cuts agreed to in Super Committee negotiations, which ultimately failed. To make up the difference, Democrats are insisting that the GOP abandon other, conservative payfors, such as greater means-testing in Medicare. Instead, they’re pushing Republicans to accept ideas like ending a tax benefit for corporate jet owners, and counting war savings toward the cost of the bill.

http://tpmdc.talkingpointsmemo.com/2011/12/shutdown-averted-as-dem-gop-leaders-hash-out-payroll-tax-deal.php