House Of Representatives, Payroll Tax Cut | featured news

House of Representatives Republican Speaker John Boehner has agreed to accept a bipartisan deal to extend a payroll tax cut, in an abrupt U-turn. He had refused a vote on the bill, which was passed by Republicans and Democrats in the Senate last Saturday. Correspondents say the move amounts to a cave-in by House Republicans, and victory for President Barack Obama.

With most lawmakers gone for the holidays, President Obama took full advantage of the empty stage, appearing with everyday Americans to make the case that House Republicans need to relent and pass a payroll tax cut extension that would mean an extra $1,000 a year to a typical family.

House Speaker John Boehner and his team of GOP negotiators gathered around a conference table in the Capitol on Wednesday to show they were hard at work -- although they have no one to negotiate with, not even Senate Republicans.

Republicans in the House on Tuesday rejected the Senate's two-month extension of an expiring payroll tax cut, and moved toward initiating formal talks with Democrats on a final deal.

President Obama's aides are seeking to pressure House Republicans in the hours leading up to a vote tonight on a two-month extension of the payroll tax cut, saying an adverse decision will subject nearly 160 million Americans to a tax hike next year.

The proposal would pay for extending a payroll tax holiday and unemployment benefits in part through changes to Medicare and a pay freeze for federal workers.