Senate approves two-month extension of payroll tax holiday

Senate approves two-month extension of payroll tax holiday

The Senate on Saturday morning approved a two-month extension of the payroll tax holiday, the centerpiece of President Obama’s jobs agenda, setting up Congress to revisit the contentious issue next year.

The legislation would also extend unemployment benefits and freeze scheduled cuts to doctors’ Medicare reimbursements until March. It was approved by a vote of 89-10.

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Sens. Bob CorkerRobert (Bob) Phillips CorkerOn 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 GOP senator demands details on 'damaging' tariffs MORE (R-Tenn.), Jim DeMint (R-S.C.), Ron JohnsonRonald (Ron) Harold JohnsonSenate probes FBI's heavy-handed use of redactions to obstruct congressional investigators Hillicon Valley: DHS gets new cyber chief | White House warns lawmakers not to block ZTE deal | White nationalists find home on Google Plus | Comcast outbids Disney for Fox | Anticipation builds for report on FBI Clinton probe Graham jokes about Corker: GOP would have to be organized to be a cult MORE (R-Wis.), Mark KirkMark Steven KirkThis week: Trump heads to Capitol Hill Trump attending Senate GOP lunch Tuesday High stakes as Trump heads to Hill MORE (R-Ill.), Pat Leahy (D-Vt.), Joe ManchinJoseph (Joe) ManchinElection 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 Senate moderates push for meeting to discuss border crisis MORE (D-W.Va.), Jerry MoranGerald (Jerry) MoranFormer USA Gymnastics CEO pleads Fifth at hearing GOP, Trump at odds on pardon power Lawmakers request meeting with Amtrak CEO over funding for route MORE (R-Kan.), Bernie SandersBernard (Bernie) SandersDemocrats protest Trump's immigration policy from Senate floor Trump's America fights back The Hill's Morning Report — Sponsored by PhRMA — GOP lawmakers race to find an immigration fix MORE (I-Vt.), Jeff SessionsJefferson (Jeff) Beauregard SessionsDOJ requests military lawyers to help prosecute immigration crimes: report Trump backs down in rare reversal Senate moving ahead with border bill, despite Trump MORE (R-Ala.) and Richard Shelby (R-Ala.) voted against the package.

Sen. Rand PaulRandal (Rand) Howard PaulOvernight Health Care — Presented by the Association of American Medical Colleges — Key ObamaCare groups in limbo | Opioids sending thousands of kids into foster care | House passes bill allowing Medicaid to pay for opioid treatments US watchdog: 'We failed' to stem Afghan opium production Senate passes 6B defense bill MORE (R-Ky.) did not vote. 

The bill now awaits approval next week by the House of Representatives. Senate aides expect House 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) to agree to the proposal but he will not do so formally until he has had a chance to consult with members of the House GOP caucus.

Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellFlake threatens to limit Trump court nominees: report Senate moving ahead with border bill, despite Trump 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 MORE (R-Ky.) won an important concession by pressing Democrats to include in the bill House-passed language to expedite construction of the Keystone XL oil sands pipeline.

The bill does not extend an array of expiring business tax provisions, which Senate leaders were negotiating as part of a possible deal to extend the payroll tax holiday for a full year.

The legislation is expected to cost around $30 billion and will be offset by increasing the fees that Fannie Mae and Freddie Mac charge mortgage lenders to guarantee repayments of new mortgage loans.


McConnell hailed the inclusion of the Keystone language.

“Here’s the single largest shovel-ready project in America,” McConnell said. “It is literally ready to go, awaiting the permission of the president of the United States.

“Some of the news outlets are calling this pipeline controversial. I have no idea why it could be called controversial,” McConnell added. “The labor unions like it. Many Democrats want it. It strengthens our national security by decreasing the amount of oil we get from unfriendly countries.”

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 he was one of the first members of Congress to oppose the project but he felt it was necessary to grant Republicans a concession to get extended tax relief and unemployment benefits.

“I was responsible for putting it in this bill,” Reid said. “That’s how legislation works. I would  also say that we’re thankful that we’ve worked together to make sure that 160 million people have not a tax increase but a continued tax break. And I’m also thankful that the lifeline for unemployed people is going to continue for at least 60 days."

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The Congressional Budget Office released a score for the bill just before the vote. The budget agency estimated the legislation would reduce the deficit by nearly $3 billion. 

Reid had attempted to postpone the vote until 10 a.m. to give the CBO time to finish its official cost estimate but Sen. Bob Corker (R-Tenn.) objected.

Reid had attempted a last-minute switch of the order of votes by proceeding first to a $915 billion omnibus spending bill, instead of the payroll tax holiday package.

Reid, however, also proposed making passage of the spending legislation contingent on subsequent approval of the payroll tax holiday, evidence that Democrats have used the omnibus as leverage to pressure Republicans to accept extended payroll tax relief. Corker objected to this unusual sequence.

This story was last updated at 10:15 a.m.