Senate leaders reach last-minute deal on payroll tax cuts

(AP) - Senate leaders agreed on compromise legislation to extend Social Security payroll tax cuts and jobless benefits for two months while requiring President Barack Obama to accept Republican demands

News 12 Staff

Dec 17, 2011, 1:55 AM

Updated 4,544 days ago

Share:

Senate leaders reach last-minute deal on payroll tax cuts
(AP) - Senate leaders agreed on compromise legislation to extend Social Security payroll tax cuts and jobless benefits for two months while requiring President Barack Obama to accept Republican demands for a swift decision on the fate of an oil pipeline that promises thousands of jobs. A vote is expected Saturday on the measure, the last in a highly contentious year of divided government.Any deal would also require House passage before it could reach Obama's desk.A senior administration official said on condition of anonymity that the president would sign the measure but almost certainly refuse to grant a permit for the oil pipeline project. The official was not authorized to speak publicly about the deal.Racing to adjourn for the year, lawmakers moved quickly to clear separate legislation avoiding a partial government shutdown threatened for midnight.There was no immediate response to the compromise from the White House, which a few hours earlier had backed away from Obama's threat to veto any bill that linked the payroll tax cut extension with a Republican demand for a speedy decision on the 1,700-mile Keystone XL oil pipeline proposed from Canada to Texas.Republican senators leaving a closed-door meeting put the price tag of the two-month package at between $30 billion and $40 billion said the cost would be covered through a fee on mortgages backed by Fannie Mae and Freddie Mac.The legislation would also provide a 60-day reprieve from a scheduled 27 percent cut in the fees paid to doctors who treat Medicare patients.Several officials said it would require a decision within 60 days on the pipeline, with the president required to authorize construction unless he determined that would not be in the national interest.Obama recently announced he was postponing a decision until after the 2012 elections on the much-studied proposal. Environmentalists oppose the project, but several unions support it, putting the president in the uncomfortable position of having to choose between customary political allies.Senators in both parties hastened to claim credit.Sen. Richard Lugar (R-Ind.) issued a statement that said the compromise included legislation he authored "that forces President Obama to make a decision" on the pipeline.Sen. Max Baucus (D-Mont.) said he had "brokered a final deal by bringing lawmakers from both parties together to support jobs.


More from News 12
0:19
Officials: 12-year-old from Fort Lee dies

Officials: 12-year-old from Fort Lee dies

2:19
STORM WATCH: Mix of sun and clouds Sunday in New Jersey; rain and thunder on Memorial Day

STORM WATCH: Mix of sun and clouds Sunday in New Jersey; rain and thunder on Memorial Day

2:54
Perth Amboy Fire Department offers grilling safety tips for the summer season

Perth Amboy Fire Department offers grilling safety tips for the summer season

0:27
Police: 26-year-old motorcyclist killed in Englewood crash

Police: 26-year-old motorcyclist killed in Englewood crash

Guide: 2024 Memorial Day Parades in New Jersey

Guide: 2024 Memorial Day Parades in New Jersey

1:47
More than the Shore: New Jersey celebrates Memorial Day weekend in Hoboken

More than the Shore: New Jersey celebrates Memorial Day weekend in Hoboken

1:45
Beachgoers pack the Jersey Shore to mark unofficial start of summer

Beachgoers pack the Jersey Shore to mark unofficial start of summer

1:11
Thousands participate in 46th annual Spring Lake 5-mile run

Thousands participate in 46th annual Spring Lake 5-mile run

Dolphin stuck in NJ creek dies after ‘last resort’ rescue attempt, officials say

Dolphin stuck in NJ creek dies after ‘last resort’ rescue attempt, officials say

2:08
Blood test that detects colon cancer close to receiving FDA approval

Blood test that detects colon cancer close to receiving FDA approval

1:34
'This is unbelievable traffic.’ Memorial Day travelers share road trip blues

'This is unbelievable traffic.’ Memorial Day travelers share road trip blues

0:18
Prosecutor: Man accused of killing man in Roselle park turns himself in

Prosecutor: Man accused of killing man in Roselle park turns himself in

2:50
Police: 1 person injured in explosion at Sayreville power station; hundreds without power

Police: 1 person injured in explosion at Sayreville power station; hundreds without power

0:24
Newark man convicted of robbing poker player in Atlantic City

Newark man convicted of robbing poker player in Atlantic City

1:34
Fire at commercial building in Secaucus sends plumes of smoke into the air

Fire at commercial building in Secaucus sends plumes of smoke into the air

0:51
Jersey Proud: Ashley Lauren Foundation helps provide pool to boy with brain cancer

Jersey Proud: Ashley Lauren Foundation helps provide pool to boy with brain cancer

0:44
Gov. Murphy announces $100M Boardwalk Preservation Fund for the Jersey Shore

Gov. Murphy announces $100M Boardwalk Preservation Fund for the Jersey Shore

2:10
Jersey Shore business owners hope for successful Memorial Day, despite Route 71 bridge repairs

Jersey Shore business owners hope for successful Memorial Day, despite Route 71 bridge repairs

2:07
‘It was like a nightmare. Very scary.’ Thursday’s severe storm creates chaos for West Milford residents

‘It was like a nightmare. Very scary.’ Thursday’s severe storm creates chaos for West Milford residents

6:13
EXCLUSIVE: Donald Trump one-on-one interview with News 12

EXCLUSIVE: Donald Trump one-on-one interview with News 12