Senate Republican Leader Mitch McConnell said Tuesday that Republicans are working on an alternate proposal for extending the payroll tax cut, and predicted that, at the end of the day, “the House will insist that as we extend this payroll tax relief for individuals only for another year.”

McConnell, speaking to reporters at a press availability, declined to provide details of the Republican bill, other than to say it would “be paid for in an acceptable way that does not adversely impact job creation.”

“In all likelihood, we will agree to continue the current payroll tax relief for another year, but we believe that it should be paid for,” the Kentucky Republican told reporters. “Senate Republicans will offer an alternative that would pay for it. I believe House Republicans later will produce a similar bill that is paid for. And at the end of the day, I think the House will insist that as we extend this payroll tax relief for individuals only for another year, that it be paid for in an acceptable way that does not adversely impact job creation at a time when we are either in a recession or look very much like we’re in a recession.”

President Obama is urging Congress to pass a bill extending the payroll tax cut, and the White House has repeatedly warned that failing to do so will cause families making $50,000 per year to see a tax hike of $1,000.

Continue reading →