
Cantor: Tax talk will only take an hour STORY HIGHLIGHTS NEW: House Speaker accepts a two-month extension of the payroll tax cut NEW: Speaker Boehner will hold a news conference at 5:30 p.m. Obama had urged the House GOP to "reconsider" its opposition to the Senate plan The payroll tax cut is set to expire December 31 What does $40 mean in your household? Let us know in a short video. Washington (CNN) -- House Speaker John Boehner on Thursday announced an agreement with Senate Democratic leader Harry Reid to extend the payroll tax cut for two months. The deal amounted to a reversal of the opposition by House Republicans of the two-month extension passed by the Senate. According to Republican and Democratic sources, previously recalcitrant House GOP leaders agreed to the short-term extension of the tax break to allow time for further negotiations. Those terms were part of a bipartisan Senate deal that President Barack Obama and congressional Democrats demanded the House accept. The deal also includes the addition of legislative language to ease the administrative burden on small businesses implementing the plan, Boehner said in a statement. "We will ask the House and Senate to approve this agreement by unanimous consent before Christmas," Boehner said, indicating the chambers could pass the plan without objection so that members don't have to return to Washington from their holiday recess. The development came hours after Senate Minority Leader Mitch McConnell, R-Kentucky, called for a short-term extension to end the standoff, increasing pressure on House GOP leaders to end their resistance to such a step. Boehner, R-Ohio, initially rejected McConnell's call, instead releasing a statement that reiterated his demand for negotiators to craft an immediate one-year tax cut extension -- something that has been considered extremely unlikely by most congressional observers. With nine days until the payroll tax cut is set to expire, bringing a tax increase averaging $1,000 for American workers, the ongoing impasse pitting the House Republican leadership against the White House, congressional Democrats and fellow Republicans is the kind of political gamesmanship that Americans dislike about Congress, Obama said earlier Thursday. The two-month Senate compromise was passed last Saturday by an 89-10 vote, with strong Republican support, after Senate negotiators were unable to agree on a one-year extension. Boehner has instead demanded negotiations on a one-year extension, arguing that anything shorter would simply prolong the issue and causes uncertainty for American taxpayers and businesses. His stance drew sharp criticism this week, including an editorial in the conservative Wall Street Journal that said House Republicans had lost the political advantage of advocating tax cuts to Obama and the Democrats. On Thursday, McConnell's proposal and calls by other conservative Republicans for the House … [Read more...]














