Democrats Urge Republicans to Pass Payroll Tax Cut Extension as Deadline Looms

Representative Chris Van Hollen, Ranking Member of the House Budget Committee, appeared on Bloomberg Television to discuss the efforts to extend the payroll tax cut for 160 million Americans before it expires at the end of the year. Van Hollen emphasized that the Senate had already passed a bipartisan compromise, but the House Republicans are now blocking its passage. He urged Speaker Boehner to bring the bill to the floor for a vote, citing the potential consequences of not extending the tax cut, including jobs lost and a negative impact on the economy.

Key Takeaways:

• Representative Chris Van Hollen stated that the Senate had passed a bipartisan compromise to extend the payroll tax cut, but House Republicans are now blocking its passage.
• The compromise included a 12-month extension of the payroll tax cut, which would benefit 160 million Americans, and a surcharge on individuals who earn more than $1 million per year to pay for it.
• Van Hollen accused Speaker Boehner of being swayed by the Tea Party wing of his caucus and allowing them to sabotage the bipartisan agreement.
• He emphasized that the nonpartisan Congressional Budget Office has estimated that not extending the payroll tax cut would result in job losses, and independent economists have made similar estimates, including Mark Zandi, who estimated that a million jobs could be lost.
• Van Hollen urged Speaker Boehner to bring the bill to the floor for a vote and to work with Democrats to pass the compromise, citing the need for bipartisan cooperation to get things done for the good of the country.
• Senator Lugar and Senator Scott Brown of Massachusetts have also called on Speaker Boehner to support the compromise and pass the bill.

Statistics:

• 160 million Americans would benefit from the payroll tax cut extension.
• $1 million per year is the income threshold above which individuals would be subject to the surcharge to pay for the tax cut extension.
• 12 months is the duration of the compromise payroll tax cut extension.
• 1 million jobs could be lost if the payroll tax cut is not extended, according to Mark Zandi.
• The nonpartisan Congressional Budget Office estimates that not extending the payroll tax cut would result in job losses.

Sources:

• Bloomberg Television interview with Representative Chris Van Hollen, December 19
• Senate bipartisan compromise on payroll tax cut extension
• Congressional Budget Office report on the impact of the payroll tax cut
• Mark Zandi interview on the potential impact of not extending the payroll tax cut