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Congressional Negotiators Reach Payroll Deal Congressional Negotiators Reach Payroll Deal

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Congressional Negotiators Reach Payroll Deal

Accord likely headed for vote this week.


House Speaker John Boehner of Ohio, talks about an accord on the payroll tax cut negotiations on Thursday.(J. Scott Applewhite/AP)

Late Wednesday night, congressional negotiators reached an agreement that extends the payroll-tax holiday for millions of Americans. The deal came after a roller-coaster day of negotiations, less than 24 hours after a tentative agreement had been struck.

The emerging compromise had earned the wrath of conservatives who are unhappy that the payroll-tax cut will not be offset with spending cuts. It also incurred the enmity of liberals who are wary of federal workers having to cough up more benefits to cover the package's extension of unemployment benefits and a patch for the so-called doc fix that would have left physicians with a substantial cut in their Medicare reimbursements.


The measure is headed toward a vote before Congress leaves town for a district work period, perhaps as early as Friday but quite possibly Saturday if lawmakers hew to the rules about allowing enough time for members to read pending legislation. Given the near-death experience with so many important funding bills over the past year, no one is taking passage for granted (although approval appears more likely than not at this point).

The deal, such as it is, seems like less of a triumph for Congress than the mere prevention of disaster. Neither party had wanted to see the payroll tax go up in an election year with a weak economy; nor did they want unemployment benefits to cease. So they've emerged with something that can tide them over until after the election. But it's worth remembering that this patch comes after the previous two-month patch--which came about after another standoff. A lasting accord this is not. The deal does, though, represent something of a capitulation by Republican leaders, who had insisted that any payroll-tax cuts be offset with spending cuts. This capitulation had earned the ire of many conservative lawmakers over the past two days. It remains to be seen whether enough Democrats will join with compromise-supporting Republicans to get a bill to the president's desk. 

For his part, President Obama reportedly weighed in on the measure, calling wavering Democratic lawmakers who were resisting the costs being imposed on federal workers. He got them to agree, showing how eager the White House is to avoid higher payroll taxes. Meanwhile, all millions of Americans can do is watch and see whether their weekly paychecks shrink because Congress couldn't close a deal that everyone wanted.


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