US News

Congress passes two-month payroll tax extension

WASHINGTON — Congress passed a two-month extension of the payroll tax holiday by unanimous consent on the House and Senate floors Friday.

The bill passed by unanimous consent in the Senate shortly after 9:30 a.m. with Sen. Mark Warner (D-Va.) presiding over the vote after Senate Majority Leader Harry Reid (D-Nev.) called for the bill to be passed on the floor.

The House of Representatives also passed the measure by unanimous consent shortly after it convened at 10:00 a.m.

Reid addressed reporters following the Senate vote, saying that he hoped Congress would put partisan differences aside in the new year.

“I hope this congress has had a very good learning experience,” he said. “Everything we do around here does not have to wind up in a fight.”

“It seems like everything we have done this year has been a knock-down, drag-out fight. Legislation is the art of compromise,” he continued. “Consensus-building, not trying to push your way through on issues where you don’t have the support of the American people.”

Reid also thanked his Republican counterpart, Senate Minority leader Mitch McConnell (R-Ky.) for “sticking by the arrangement we made.”

Following a bruising battle on Capitol Hill, House Speaker John Boehner (R-Ohio) announced an agreement had been struck Thursday evening to pass the Senate legislation. The agreement paves the way for Congress to negotiate a full one year extension when lawmakers return to Washington in the new year.

Boehner acknowledged Thursday evening that House Republicans had been forced to back down after a lengthy fight.

“We were here fighting for the right thing,” he said. “It may not have been politically the smartest thing in the world, but I’m going to tell you what: I think our members waged a good fight.”

At his press conference Friday, Reid also announced that he had appointed Sens. Max Baucus (D-Mont.), Ben Cardin (D-Md.), Jack Reed (D-R.I.) and Bob Casey (D-Pa.) to be his four conferees that would work on a long-term extension with the House.

The deal worked out by leaders of both parties ensures that the employee payroll tax rate will remain at 4.2 percent for another two months, providing tax relief for 160 million Americans. It also extends long-term unemployment benefits and prevents a sharp drop in Medicare payments for doctors.

On Thursday evening, President Barack Obama congratulated Congress for ending “the partisan stalemate.”

“This is good news, just in time for the holidays,” he said in a statement.