RedState: House Must Decouple Payroll Tax Cut From Broader ‘Extenders’ Package

December 19, 2011

Over the weekend, Mitch McConnell and Senate Republicans obviated the superior leverage of House Republicans by passing a two-month extension of the payroll tax cut, along with a clean extension (no reforms and offsets) of doc fix and unemployment benefits.

In a premature capitulation, they agreed (89-10) to amend the House extenders bill by eliminating most of the spending offsets, all of the UI reforms and the policy riders, with the exception of the Keystone pipeline provision. They will fill in the $33 billion two-month gaping budget hole with nebulous revenue increases from higher Freddie/Fannie mortgages over ten years. To the extent that those revenues will be actualized, this deal will indeed make it harder to shut down these officious venture-socialist enterprises. The Senate action was akin to grounding into a triple play for Team GOP, yet the underlying bill passed with unanimous consent.

Yes – we can already see the ecstatic pronouncements emanating from the McConnell Republican echo chamber. “We got the pipeline,” they will exclaim. But here is the problem: the ship already sailed on that. This issue was such a political liability for Obama that, despite his rhetoric, it was a foregone conclusion he would be forced to cave on it. He was not going to allow this to become an albatross around his neck during the election. Accordingly, the White House is lending enthusiastic support to McConnell’s Senate-passed extension. Besides, due to loopholes in the Keystone provision, the administration is already balking at compliance with the language of the bill.

http://www.redstate.com/dhorowitz3/2011/12/18/house-must-decouple-payroll-tax-cut-from-broader-%E2%80%98extenders%E2%80%99-package/