Senate Republicans to Propose an Alternative Way to Pay for Payroll Tax Extension

Senate Minority Leader Mitch McConnell, R-KY., predicted that the payroll tax extension Congress is currently debating will be eventually passed for another year.

“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,” McConnell said, following the Republicans weekly caucus luncheon. “I think at the end of the day there’s a lot of sentiment in our conference, clearly a majority sentiment, for continuing the payroll tax relief that we enacted a year ago in these tough times.”

McConnell said that Republicans will offer an alternative way to pay for the extension but declined to give additional details.

“It will 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, ” McConnell said.

Republicans are adamantly against the Senate Democratic proposals for the extension and expansion of the payroll tax because the way they proposed to pay for the $265 billion bill is by  a 3.25% surtax on Americans making over $1 million.

This week the Senate will vote on the Democratic version of the extension of the payroll tax.  Some Republicans are calling it a “show vote,” because it will almost certainly fail with the controversial way to pay for the bill tacked on.

Democrats this week indicated that they’d be open for different ways to pay for the bill.

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