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Congress / CONGRESS

House Republicans Agree To Payroll Deal

photo of Major Garrett
December 22, 2011

House Republicans on Thursday crumpled under the weight of White House and public pressure and have agreed to pass a two-month extension of the payroll-tax cut, Republican and Democratic sources told National Journal.

The House made the move after Senate Majority Leader Harry Reid, D-Nev., agreed to appoint conferees to a committee to resolve differences between the Senate's two-month, 2 percentage point, payroll-tax cut and the House's one-year alternative.

The House will pass the two-month extension with a technical correction to the language designed to minimize difficulties businesses might experience implementing the short-term, two-month tax cut extension.

 

Negotiators "found a path forward for a 2-month deal that provides a brief extension, that fixes the payroll problems in the Senate-passed bill, and that provides the ability to work toward a longer-term solution," said another House GOP aide with direct knowledge of the negotiations. The deal would remove some reporting requirements that Republicans argued added to the administrative burden caused by a short-term extension

 

(RELATED: Payroll Deal at Hand, Sources Say)

Kelsey Snell contributed contributed to this article.

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