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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 CorkerLawmakers point fingers at Saudi crown prince in Khashoggi's death Corker calls for 'collective' response from Western countries if Saudi crown prince found responsible in Khashoggi's death The Memo: Trump in a corner on Saudi Arabia MORE (R-Tenn.), Jim DeMint (R-S.C.), Ron JohnsonRonald (Ron) Harold JohnsonGOP senator seeking information on FBI dealings with Bruce Ohr, former DOJ lawyer Election Countdown: O'Rourke brings in massive M haul | Deal on judges lets senators return to the trail | Hurricane puts Florida candidates in the spotlight | Adelson spending big to save GOP in midterms Senate Homeland chair vents Mueller probe is preventing panel from receiving oversight answers 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) ManchinManchin wrestles with progressive backlash in West Virginia Democrats slide in battle for Senate Five takeaways from testy Heller-Rosen debate in Nevada MORE (D-W.Va.), Jerry MoranGerald (Jerry) MoranSenate Republicans demand Google hand over memo advising it to hide data vulnerability Overnight Defense — Presented by The Embassy of the United Arab Emirates — Missing journalist strains US-Saudi ties | Senators push Trump to open investigation | Trump speaks with Saudi officials | New questions over support for Saudi coalition in Yemen Senators demand answers on Trump administration backing of Saudi coalition in Yemen MORE (R-Kan.), Bernie SandersBernard (Bernie) SandersSanders thanks Iowa voters for giving momentum to progressive agenda Live coverage: Gillum clashes with DeSantis in Florida debate Miami Herald endorses Gillum for governor MORE (I-Vt.), Jeff SessionsJefferson (Jeff) Beauregard SessionsBeto O'Rourke on impeachment: 'There is enough there to proceed' Rosenstein to appear for House interview next week Emmet Flood steps in as White House counsel following McGahn departure MORE (R-Ala.) and Richard Shelby (R-Ala.) voted against the package.

Sen. Rand PaulRandal (Rand) Howard PaulErdoğan: Turkey to announce findings of Khashoggi investigation on Tuesday Lawmakers point fingers at Saudi crown prince in Khashoggi's death Rand Paul: Saudi explanation of Khashoggi's death 'insulting' 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 BoehnerHouston Chronicle endorses Beto O'Rourke in Texas Senate race The Hill's 12:30 Report — Presented by Citi — House postpones Rosenstein meeting | Trump hits Dems over Medicare for all | Hurricane Michael nears landfall Kavanaugh becomes new flashpoint in midterms defined by anger 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 McConnellEx-lawmaker urges Americans to publicly confront officials Manchin wrestles with progressive backlash in West Virginia Democrats slide in battle for Senate 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 ReidFive takeaways from testy Heller-Rosen debate in Nevada Major overhauls needed to ensure a violent revolution remains fictional Senate heads home to campaign after deal on Trump nominees 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.