In a surprise turnabout, Republicans in the House of Representatives are now pushing for a one-year extension of the payroll tax cut and have rejected a short-term compromise struck by Republicans and Democrats in the Senate during the weekend.
House Republicans initially opposed renewing the tax break, which expires on December 31, after expressing skepticism that it would boost the economy as the White House claimed.
House Speaker John Boehner, the top Republican in Congress, said his chamber would vote on Monday and likely reject the Senate bill passed on Saturday, despite it having the blessing of Senate Republican leader Mitch McConnell.
Even some Senate Republicans were attacking House colleagues for opposing the two-month extension.
"The House Republicans' plan to scuttle the deal to help middle-class families is irresponsible and wrong," said Republican Senator Scott Brown.
Mark Zandi, chief economist at Moody's Analytics, speaking to Reuters Insider, bluntly warned: "I do think recession odds will rise quite significantly early next year if it is not extended."
Payroll tax cut extension stuck in partisan fight | Reuters
I wonder if the Republicans haven't really changed their minds about it - if they're still against it - but don't feel like they can just come right out and say so. This would give them cover - they can say, "Hey, we TRIED to pass it - we just wanted it to be for a whole year, not just two months (or whatever)."