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 BoehnerDems face hard choice for State of the Union response Even some conservatives seem open to return to earmarks Overnight Finance: Trump, lawmakers take key step to immigration deal | Trump urges Congress to bring back earmarks | Tax law poised to create windfall for states | Trump to attend Davos | Dimon walks back bitcoin criticism 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 McConnellSessions: 'We should be like Canada' in how we take in immigrants NSA spying program overcomes key Senate hurdle Overnight Finance: Lawmakers see shutdown odds rising | Trump calls for looser rules for bank loans | Consumer bureau moves to revise payday lending rule | Trump warns China on trade deficit 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 BoehnerDems face hard choice for State of the Union response Even some conservatives seem open to return to earmarks Overnight Finance: Trump, lawmakers take key step to immigration deal | Trump urges Congress to bring back earmarks | Tax law poised to create windfall for states | Trump to attend Davos | Dimon walks back bitcoin criticism 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 CardinCongress should take the lead on reworking a successful Iran deal 'Fix' the Iran deal, but don't move the goalposts North Korea tensions ease ahead of Winter Olympics MORE (D-Md.), Barbara MikulskiBarbara MikulskiClinton: White House slow-walking Russia sanctions Top Lobbyists 2017: Hired Guns Gore wishes Mikulski a happy birthday at 'Inconvenient Sequel' premiere MORE (D-Md.), Joe ManchinJoseph (Joe) ManchinMcConnell to Dems: Don't hold government 'hostage' over DACA Lawmakers see shutdown’s odds rising Senate campaign fundraising reports roll in MORE (D-W.Va.), Mark WarnerMark Robert WarnerNSA spying program overcomes key Senate hurdle Dem lawmaker wants briefing on major chip vulnerabilities Week ahead: Tech giants to testify on extremist content MORE (D-Va.) and Tom HarkinThomas (Tom) Richard HarkinOrrin Hatch, ‘a tough old bird,’ got a lot done in the Senate Democrats are all talk when it comes to DC statehood The Hill's 12:30 Report 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 BarrassoTrump’s infrastructure plan may slip to next month Overnight Finance: Trump, lawmakers take key step to immigration deal | Trump urges Congress to bring back earmarks | Tax law poised to create windfall for states | Trump to attend Davos | Dimon walks back bitcoin criticism Trump's infrastructure team to huddle with senators MORE (Wyo.), told reporters they were shunted aside from the talks led by Senate Finance Committee Chairman Max BaucusMax Sieben BaucusSteady American leadership is key to success with China and Korea Orrin Hatch, ‘a tough old bird,’ got a lot done in the Senate Canada crossing fine line between fair and unfair trade 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 SchumerDemocrats will need to explain if they shut government down over illegal immigration White House: Trump remarks didn't derail shutdown talks Schumer defends Durbin after GOP senator questions account of Trump meeting 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 ReidDems search for winning playbook Dems face hard choice for State of the Union response The Memo: Immigration battle tests activists’ muscle 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 CoburnRepublicans in Congress shouldn't try to bring back earmarks Republicans should know reviving earmarks is a political nightmare Former GOP senator: Trump has a personality disorder MORE (R-Okla.).

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

Sen. Orrin HatchOrrin Grant HatchKoch groups: Don't renew expired tax breaks in government funding bill Hatch tweets link to 'invisible' glasses after getting spotted removing pair that wasn't there DHS giving ‘active defense’ cyber tools to private sector, secretary says 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.