The House Rules Committee met to prepare H.R. 3630, an extension of the payroll tax cut and building of the Keystone XL pipeline. The Republican proposal differs from those offered by Democrats in the Senate.
Leaders of both political parties say they want to pass an extension of the payroll tax cut, but a wide gap exists on how to do that.
The Republican proposal, which will be debated in the Rules Committee this evening and before the full House this week, would extend the payroll tax rate of 4.2% for another year. To pay for it, the Republican bill proposes budget cuts. It also includes a provision to allow the construction of the Trans-Canada Keystone XL pipeline. It also allows for an extension of unemployment insurance for 59 weeks. The President said he would reject attaching the Keystone issue to a tax bill. Democrats in the Senate say they will not accept it either.
The Democrats' proposal, which failed to pass the Senate, would extend the payroll tax cut to 3.1% and would replenish the Social Security Trust Fund over the next ten years by placing a surtax on those making more than one million dollars per year.