In Washington, House Republicans accede to the Obama Administration’s demand for an unencumbered payroll tax extension.
WASHINGTON, Feb 13 (Reuters) – Republican leaders in the U.S. House of Representatives on Monday dropped their demand for spending reductions to pay for extending a tax cut for 160 million American workers, setting up a likely breakthrough for agreement with Democrats.
The about-face cleared the way for the Republican-led House to vote this week to renew for 10 months the tax cut set to expire on Feb. 29.
“They folded,” a senior Democratic aide said. “Republicans know their ongoing handwringing on getting their members to support this tax cut is a loser for them.”
One of the Wisconsin Tea Party caucus was not so sanguine about the deal.
Republican Senator Ron Johnson, a favorite of the conservative Tea Party movement, voiced concerns about adding the roughly $100 billion cost of extending the payroll tax cut to the debt but acknowledged that “there is such great political pressure” to extend the payroll tax cut.
You go with that, Ron. It’s a winner. Please… Support higher taxes. Let’s see how far that will carry you in a state that’s dead last on job growth and is facing more tough economic times.
It’s been a good month for the President so far…