U.S. leaders say they are hard at work on payroll tax

Republicans and Democrats in Congress are deadlocked over a bill to extend the payroll tax cut, with just about 10 days to stop a tax increase for 160 million Americans.


House Republicans have so far refused to accept a compromise with Senate Democrats and President Obama -- but while they may be holding out for a legislative victory, they are already losing the fight politically.


The fight over the payroll tax cut extension took a surprising turn this week when the GOP-led House refused to accept a Senate-passed version of the bill, which passed with 89 votes and the support of all but seven Republicans.


Now, lawmakers in the Republican party are questioning their leaders' decisions and prominent conservative opinion-makers like the Wall Street Journal editorial board are skewering the GOP for botching the payroll tax cut debate. The Journal's editorial board wrote that, "Given how [Senate Republican Leader Mitch McConnell] and House Speaker John Boehner have handled the payroll tax debate, we wonder if they might end up re-electing the president before the 2012 campaign even begins in earnest."


Democrats are hesitant to reenter formal talks with the House GOP until the stopgap measure is approved. They doubt that Republicans really want to extend the tax cut and worry they will try to extract further concessions in exchange for votes.


As each side waits for the other to blink, they are calculating who will take the blame if taxes rise. So far, House Republicans have endured heavy criticism, even from allies, for rejecting the Senate deal — which passed by a bipartisan 89-10 vote — and for tarnishing the GOP's reputation as the party of low taxes.


The Wall Street Journal editorial board called the GOP strategy a fiasco, arguing that it allowed the president to look like a tax-cutter. Sen. John McCain (R-Ariz.) tweeted that the editorial was "right on the mark."


"I'm amazed by how badly this payroll tax cut is being mishandled," said Ron Nehring, chairman emeritus of the California Republican Party, in a tweet. "Let's extend it a year, throw in a new pipeline" — a reference to a provision that would expedite a decision on the controversial Keystone XL project — "and call it a day."


Boehner answered critics Wednesday during a photo opportunity with his negotiators. Republicans sat on one side of a conference table, facing empty chairs supposedly set out for Democrats.


"We are the party of lower taxes for the American people," Boehner said. "We have fought for lower taxes for the 21 years that I've been in this Congress, and we are going to continue to be the party of lower taxes."


House Democrats, meanwhile, have launched a campaign to target Republican lawmakers at home for rejecting the Senate compromise.


Rep. Steny H. Hoyer of Maryland, the minority whip, tried to bring the Senate bill up for a vote during a pro forma session in an empty Capitol. But the GOP representative in the speaker's chair, Rep. Michael G. Fitzpatrick (R-Pa.), gaveled business to a close.