A House GOP leadership aide confirmed that House Speaker John Boehner and Senate Majority Leader Harry Reid reached a deal to extend the payroll tax cut by two months—a deal very close to what the Senate passed last week.
[See the latest political cartoons.]
The difference? The new legislation will ensure that the reporting requirements for businesses remain the same, addressing concerns from payroll reporting experts that a two-month extension will sow confusion for businesses.
"While the two-month extension still falls short of providing the certainty Americans need, this solution will at minimum prevent small businesses from bearing a new administrative burden," the aide said.
The deal will continue a payroll tax cut, extend benefits to the long-term unemployed, and prevent cuts to payments for Medicare doctors until the end of February. It will also force the Obama administration to make a decision on the controversial Keystone Pipeline within 60 days.
[What 'Job Creators' Really Want.]
As part of the deal, Reid will appoint representatives to a conference committee to hammer out a compromise with the House of Representatives on a long-term extension.
Earlier Thursday, a Senate Democratic aide claimed that a conference committee would just be a "sideshow" while the real negotiations happen elsewhere.
- See cartoons about the federal budget and deficit.
- McCain: House GOP wrong on payroll tax cut.
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aparker@usnews.com
Twitter: @AlexParkerDC
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