Congress approves payroll tax bill

The House on Friday morning approved a bill extending the payroll tax holiday and unemployment insurance for two months, and also preventing a planned cut to reimbursements for Medicare physicians.

Rep. Jo Ann Emerson (R-Mo.) asked for unanimous consent, which was declared approved by House Speaker John BoehnerJohn Andrew BoehnerHillicon Valley: Trump hits China with massive tech tariffs | Facebook meets with GOP leaders over bias allegations | Judge sends Manafort to jail ahead of trial | AT&T completes Time Warner purchase Facebook execs to meet with GOP leaders over concerns about anti-conservative bias Boehner: Federal government should not interfere in recreational marijuana decisions MORE (R-Ohio). The bill is H.R. 3765.

House Minority Whip Steny Hoyer (D-Md.), who tried unsuccessfully to force a vote on the Senate bill earlier in the week, spoke briefly before the bill was accepted to thank Republicans for finally agreeing to the extension.

"I know that the American people are pleased that we have come together to agree on this extension to give certainty and peace of mind to 160 million Americans who are concerned about losing their tax cut, the 48 million seniors who are concerned about their Medicare and the 2.3 million people who are unemployed and seeking work who are fearful of losing their benefits," Hoyer said.

"I thank the Speaker, and I thank the gentlelady from Missouri," he said.

The bill was sent to the White House and signed into law by President Obama.

The quick House passage capped a disastrous public-relations week for House Republican leaders, who initially signaled support for the two-month extension agreed to in the Senate, then changed their minds after rank-and-file members said they opposed what could be a complicated patch for employers.

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The House on Tuesday rejected the Senate's two-month extension, and spent the rest of the week calling for Senate Democrats to return to Washington and find a way to approve a yearlong extension.

But by Thursday, signs were emerging that Democrats were winning the PR battle, in part because Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCongress had a good couple of weeks — now let's keep it going McCarthy: 'The Mueller investigation has got to stop' McConnell: Mueller 'ought to wrap it up' MORE (R-Ky.) broke with BoehnerJohn Andrew BoehnerHillicon Valley: Trump hits China with massive tech tariffs | Facebook meets with GOP leaders over bias allegations | Judge sends Manafort to jail ahead of trial | AT&T completes Time Warner purchase Facebook execs to meet with GOP leaders over concerns about anti-conservative bias Boehner: Federal government should not interfere in recreational marijuana decisions MORE and called on the House to accept the Senate compromise.

Reporters and photographers swarmed Boehner as he strode back to his Capitol office suite after Friday's session, but the Speaker refused to answer any questions.  

"If I answered one question, it would be one too many," Boehner said.

With their political victory clear to all, Democrats were restrained on Tuesday, showing little interest in spiking the football on an agreement that extended a tax cut for just two months.

“This is a small win, but it’s a big win,” said Rep. John Dingell (D-Mich.), the longest-serving member of the House.

In a dig at the GOP, Dingell said he was hopeful the victory “was a sign of things to come” and offered some unsolicited advice to the House Republican rank and file.

“I’m hoping they’ll also learn to follow their leader, Mr. Boehner,” Dingell said.

Rep. Xavier BecerraXavier BecerraOvernight Energy: New controversies cap rough week for Pruitt | Trump 'not happy about certain things' with Pruitt | EPA backtracks on suspending pesticide rule EPA backpedals on suspending pesticide rule following lawsuit Overnight Health Care —Sponsored by PCMA — Spotlight on Trump drug pricing plan MORE (D-Calif.) credited President Obama, along with Americans who engaged on the issue in recent days to pressure Republicans to come to an agreement.

“A big cheer for a guy named Barack ObamaBarack Hussein ObamaShould President Trump, like President Obama, forsake human rights in pursuit of the deal with a tyrant? Obama shares summer reading list ‘Three Californias’ plan would give Dems more seats MORE, the president of the United States,” Becerra said.

The praise for Obama was notable for House Democrats, who have been among the most vocal Democratic critics of the president’s negotiating style during his three years in office.

McConnell on Thursday outlined the rough compromise that was struck between the House and Senate. Senate Democrats agreed to name conferees to meet with the House to work out a yearlong extension of the payroll tax holiday, and in return, the House would accept the two-month extension in the meantime.

Despite the heartburn the payroll fight caused Republican leaders, the bill in many ways represents a policy victory for Republicans, as it does not pay for the payroll tax extension through higher taxes, as Democrats had first proposed. It also includes language that requires the Obama administration to make a decision on the Keystone oil sands pipeline extension within 60 days, something President Obama initially said he would veto.

The bill gives a nod to Republican concerns that a two-month payroll tax extension would create a new accounting burden for companies. Republicans said they were worried that a two-month extension would complicate the effort of employers to implement the tax holiday with their employees.

Under the new bill, employers would not have to manage the transition from a two-month tax holiday to a full-year holiday at the end of February, under the assumption that a full-year extension will soon be negotiated.

Earlier Friday morning, Senate Majority Leader Harry ReidHarry Mason ReidDonald Trump is delivering on his promises and voters are noticing Danny Tarkanian wins Nevada GOP congressional primary McConnell cements his standing in GOP history MORE (D-Nev.) said that when the Senate receives a message from the House requesting a conference, the Senate would agree to the conference. Reid also made a unanimous consent request that once the House approves the two-month extension, the Senate would consider it as approved.

Before adjourning, Boehner announced the Democratic conferees to the payroll tax bill: House Ways and Means Committee ranking member Sandy Levin (D-Mich.), Becerra, House Budget Committee ranking member Chris Van Hollen, Budget Committee member Allyson Schwartz (D-Pa.) and House Energy and Commerce Committee ranking member Henry Waxman (D-Calif.).

Reid also announced Senate Democratic conferees: Finance Committee Chairman Max BaucusMax Sieben BaucusClients’ Cohen ties become PR liability Green Party puts Dem seat at risk in Montana Business groups worried about Trump's China tariffs plan MORE (Mont.) and Sens. Jack ReedJohn (Jack) Francis ReedReed: ‘Preposterous’ for Trump to say North Korea is no longer a nuclear threat Senate Dem: Using young children as a ‘political foil’ is ‘abhorrent’ Sunday Shows preview: Lawmakers, Trump allies discuss Russia probe, migrant family separation MORE (R.I.), Ben CardinBenjamin (Ben) Louis CardinCommunity development impact remains clear with NMTC post-tax reform Dem sen: ‘Difficult to understand’ Trump’s treatment of allies Dem sen: No military option in North Korea ‘without extreme risks’ MORE (Md.) and Bob CaseyRobert (Bob) Patrick CaseyAction by Congress is needed to help victims of domestic violence Poll: Casey holds double-digit lead over Barletta in Pa. Senate race Ivanka Trump to press Senate on vocational training bill MORE Jr. (Pa.).

Russell Berman and Molly K. Hooper contributed. 

— This story was last updated at 1:44 p.m.