Payroll tax vote divides GOP

Payroll tax vote divides GOP

The vote to extend the payroll tax holiday on Friday will highlight a stark contrast between Republicans leaders in the House and Senate.

While House GOP leaders are reluctantly backing the agreement, most Senate Republicans are expected to vote against it. This will be the first time that Speaker John BoehnerJohn Andrew BoehnerFormer top Treasury official to head private equity group GOP strategist Steve Schmidt denounces party, will vote for Democrats Zeal, this time from the center MORE (R-Ohio) and his lieutenants will be voting differently than their Senate counterparts on a high-profile issue in the 112th Congress.

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Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMulvaney aims to cement CFPB legacy by ensuring successor's confirmation Senate left in limbo by Trump tweets, House delays Political figures pay tribute to Charles Krauthammer MORE (R-Ky.) has declined to take a public position on the measure, which would add about $100 billion to the deficit. But some of his colleagues expect him to vote no once it has safely passed the lower chamber.

“We want it to pass, but we don’t want to vote for it,” said a Republican senator who requested anonymity.

A spokesman for McConnell warned against letting other lawmakers characterize his boss’s position and noted the bill had only been finalized late Thursday afternoon. McConnell’s leadership deputies, including Sen. Jon Kyl (R-Ariz.), oppose the legislation.

One GOP source said Senate Republican leaders are worried that a storm of criticism from the upper chamber could undercut BoehnerJohn Andrew BoehnerFormer top Treasury official to head private equity group GOP strategist Steve Schmidt denounces party, will vote for Democrats Zeal, this time from the center MORE’s effort to pass the bill. 


Most Democrats have embraced the payroll deal, though Republican votes will be needed for it to clear both chambers on Friday.

A senior Democratic aide said as many as five Senate Democrats might vote against moving to a final vote on the package, which means at least 12 Republicans would have to back it to muster the 60 votes needed.

One Republican senator said he doubted the measure would get more than a dozen GOP votes in the upper chamber.

Sens. 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 (D-Md.), Barbara MikulskiBarbara Ann MikulskiDems ponder gender politics of 2020 nominee Robert Mueller's forgotten surveillance crime spree Clinton: White House slow-walking Russia sanctions MORE (D-Md.), Joe ManchinJoseph (Joe) ManchinThe Hill's Morning Report — Sponsored by PhRMA — Trump caves under immense pressure — what now? Election Countdown: Family separation policy may haunt GOP in November | Why Republican candidates are bracing for surprises | House Dems rake in record May haul | 'Dumpster fire' ad goes viral Manchin up 9 points over GOP challenger in W.Va. Senate race MORE (D-W.Va.), Mark WarnerMark Robert WarnerMulvaney aims to cement CFPB legacy by ensuring successor's confirmation Virginia Dems want answers on alleged detention center abuse Wray defends FBI after 'sobering' watchdog report MORE (D-Va.) and Tom HarkinThomas (Tom) Richard HarkinDem Senator open to bid from the left in 2020 Senate GOP rejects Trump’s call to go big on gun legislation Trump should require federal contractors to follow the law MORE (D-Iowa) have signaled opposition. It’s unclear whether they would all vote to support a filibuster or merely against final passage.

“The vote’s going to have more suspense than people might think,” said a Democratic aide.

The House is expected to vote at around 1 p.m. Friday, and senators hope to approve it by late afternoon. But lawmakers have had little time to review it, and the schedule could slip. If Senate conservatives object to waiving the rules, the process could drag out over Presidents Day weekend.

The legislation would extend the 4.2 percent payroll tax rate through the end of the year, reform and extend the federal unemployment benefits program and preserve Medicare payments to doctors at current levels.

After working hand in glove throughout much of 2011, tension has emerged between Boehner and McConnell over the last couple of months as the payroll holiday battle intensified. Yet the leaders are in very different political positions as Boehner drives the agenda in the GOP-led House while McConnell is the opposition leader in the Senate.

McConnell is in a tough position. Republican senators acknowledge that President Obama won the public-relations war when the payroll tax holiday nearly lapsed at the end of last year, and they want to avoid a similar political drubbing this spring.

Still, many Republicans think the temporary tax holiday will have a negligible effect on economic growth. They are also concerned that voting for a bill that adds to the deficit will open them to charges of hypocrisy from Tea Party activists.

Senate GOP leaders gave their rank-and-file colleagues a briefing on the package Thursday afternoon but did not urge members to vote yes or no, letting them follow their consciences, according to lawmakers who attended.

GOP Senate leadership aides did circulate a memo highlighting concessions their side won in the final agreement, including cuts to Obama’s healthcare reform law to pay for the freeze in scheduled cuts to doctors’ payments. The preventive healthcare fund set up by the law would be reduced by $5 billion over 10 years.

Two Senate Republican conferees, Sens. Kyl and John BarrassoJohn Anthony BarrassoGOP senators introduce bill to prevent family separations at border Overnight Energy: Senate panel sets Pruitt hearing | Colorado joins California with tougher emissions rules | Court sides with Trump on coal leasing program Pruitt to testify before Senate panel in August MORE (Wyo.), told reporters they were shunted aside from the talks led by Senate 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 (D-Mont.) and House Ways and Means Committee Chairman Dave Camp (R-Mich.).
Boehner dismissed the Senate GOP complaints during a press conference Thursday.

“I think you need to talk to the conferees, but everything that I’ve seen, they’ve been as involved in the process as anybody else,” he said.
Senate Democratic leaders on Thursday publicly pressed McConnell to let his members vote for the deal, even if he opposes it.

“This deal will not pass unless Leader McConnell gives it his blessing. Even if he won’t vote for it himself, he needs to allow enough of his members to support it so it can pass,” said Sen. Charles SchumerCharles (Chuck) Ellis SchumerDonald Trump Jr. headlines Montana Republican convention Montana's environmental lobby teams with governor to kill 600 jobs Dems allow separation of parents, children to continue, just to score political points MORE (N.Y.), the third-ranking Senate Democratic leader.

Schumer, who lambasted House Republicans throughout 2011, actually praised them on Thursday.

“It’s usually Speaker Boehner who gets dragged along by the Tea Party,” he added. “But this time, it looks like it may be the Senate Republican leadership.”

Senate Majority Leader Harry ReidHarry Mason ReidAmendments fuel resentments within Senate GOP Donald Trump is delivering on his promises and voters are noticing Danny Tarkanian wins Nevada GOP congressional primary MORE (D-Nev.) said, “Just last week, my counterpart Sen. McConnell said, and I quote, ‘Let’s allow the conferees to finish their work. There is no reason we shouldn’t be able to get this done.’ ”

McConnell said Republicans strongly supported extending the payroll tax holiday for the rest of the year. But he also stated clearly that the fiscal stimulus should not add to the deficit.

“At what point do we anticipate getting serious here about doing something about deficit and debt? We think we ought to pay for it,” McConnell told reporters last week. “Regardless of whether these kinds of things have been paid for or not paid for in the past, we are where we are. We're running another trillion-dollar deficit for the fourth year in a row.”

Despite their leaders’ guidance not to criticize the payroll tax holiday, some Senate conservatives could not hold back.

“If it’s not paid for, I’m not going to vote for it. Period,” said Sen. Tom CoburnThomas (Tom) Allen CoburnMr. President, let markets help save Medicare Pension insolvency crisis only grows as Congress sits on its hands Paul Ryan should realize that federal earmarks are the currency of cronyism MORE (R-Okla.).

He added that it was “absolutely immoral” for Congress to “charge it to our children.”

Sen. Orrin HatchOrrin Grant HatchSenate panel to hold hearing next week for Trump IRS nominee On The Money — Sponsored by Prudential — Senators hammers Ross on Trump tariffs | EU levies tariffs on US goods | Senate rejects Trump plan to claw back spending Senators hammer Ross over Trump tariffs MORE (Utah), the senior Republican on the Finance Committee, said he was not sure how he would vote but expressed some misgivings about the agreement.

“Personally, I’ve always had trouble with it, because it’s robbing Peter to pay Paul,” Hatch said of the plan to use general treasury funds to pay for the 10-month reduction in payroll taxes.

Hatch said he voted in December for a two-month extension of the payroll tax holiday for only one reason: That short-term package included language expediting the approval process for the Keystone XL oil sands pipeline.

Bernie Becker and Russell Berman contributed to this report.