Reid says millionaire surtax is back on the table in payroll talks

Senate Majority Leader Harry ReidHarry ReidBill O'Reilly: Politics helped kill Kate Steinle, Zarate just pulled the trigger Tax reform is nightmare Déjà vu for Puerto Rico Ex-Obama and Reid staffers: McConnell would pretend to be busy to avoid meeting with Obama MORE (D-Nev.) on Friday named four Senate Democrats to negotiate a full-year extension of the payroll tax holiday and said a surtax on millionaires is back on the table in the discussions.

Last week, Senate Democrats dropped their demand to offset the cost of a full-year payroll tax holiday with a surtax on income over a million dollars. 

But on Friday, Reid signaled Democrats will renew the push for the millionaires tax, which Republicans in both chambers strongly oppose.    

“I have instructed in a telephone call with my four senators there’s nothing off the table. Everything’s on the table,” Reid said.


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Reid said several Senate Republican colleagues have told him privately that they could support raising taxes on the wealthy to defray the budget impact.

The quick move by Reid to float the millionaire tax suggests Democrats are prepared to play hardball with the GOP in the next round of talks on the payroll package.  

Reid said he hoped Tea Party-affiliated freshmen had learned their lesson about the art of compromise after one of the most contentious legislative sessions in years.

He picked Senate Finance Committee Chairman Max BaucusMax Sieben BaucusBooker tries to find the right lane  Top Lobbyists 2017: Hired Guns GOP tries to keep spotlight on taxes amid Mueller charges MORE (Mont.), Sen. Ben CardinBenjamin (Ben) Louis CardinDems demand Tillerson end State hiring freeze, consult with Congress Former New Mexico gov: Trump's foreign policy is getting 'criticized by everybody' Dems put hold on McFarland nomination over contradictory testimony: report MORE (Md.), Sen. Jack ReedJohn (Jack) Raymond ReedSenate panel moves forward with bill to roll back Dodd-Frank Army leader on waiver report: 'There's been no change in standards' 15 Dems urge FEC to adopt new rules for online political ads MORE (R.I.) and Sen. Bob CaseyRobert (Bob) Patrick CaseyThe Hill's 12:30 Report Avalanche of Democratic senators say Franken should resign Dems look to use Moore against GOP MORE Jr. (Pa.) as the Senate Democratic representatives of the conference.

Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGOP strategist donates to Alabama Democrat McConnell names Senate GOP tax conferees Brent Budowsky: A plea to Alabama voters MORE (R-Ky.) will pick three lawmakers to represent his conference.

Reid said he expected conference negotiators to work over the December and January recess. He instructed his staff to get together next week to begin planning for the conference.

“Senate Democrats will get together, there will be a schedule — we’ll work together to come up with a schedule so that during the time we’re out of session, the conferees will still have work to do,” Reid said.  

Cardin represents many federal workers in Maryland and can be expected to strongly oppose proposals to further restrict federal worker pay. 

Reed, whose home state has one of the highest unemployment rates in the nation, is one of the Senate’s most outspoken advocates of extending unemployment benefits.

Reid said he expected a difficult conference with the House, noting that five of the eight appointed House Republican conferees have questioned the value of extending the payroll tax holiday. 

“I’m very disappointed with the conferees that the House has appointed; five of the eight have already spoken out — prior to being appointed — spoke out against extending the payroll tax cut,” Reid said.

One GOP conferee, Rep. Kevin BradyKevin Patrick BradyRyan pledges 'entitlement reform' in 2018 Senate approves motion to go to tax conference Overnight Finance: GOP delays work on funding bill amid conservative demands | Senate panel approves Fed nominee Powell | Dodd-Frank rollback advances | WH disputes report Mueller subpoenaed Trump bank records MORE (R-Texas) said earlier this month: “I’m not as big of a fan of the payroll tax cut … and the payroll tax cut, just like the other rebates, has had a marginal impact at best.”

Reid praised McConnell for standing by the compromise measure they negotiated last week to extend the payroll tax holiday and unemployment benefits for two months.

Reid said he hoped House Republicans, especially Tea Party-affiliated members, would be more receptive to compromise in 2012 after a contentious year of battling over spending cuts and tax increases, which almost shut the government down in April and caused a national default in August. 

“Everything we do around here does not have to wind up in a fight. That’s not the way things need to be,” Reid said. “It seems everything we have done this last year has been a knock-down, drag-out fight. There’s no reason to do that. 

“If there was message received from this last thing we’ve been through, I would hope especially the new members of the House will understand legislation is the art of compromise and consensus-building, not trying to push your way through on issues that you don’t have the support of the American people.”