Obama Rejects GOP Bid to Tie Payroll Tax Cut to Keystone Pipeline Approval

President Obama warned congressional Republicans today that he will reject any attempt to tie a payroll tax cut extension to approval of the controversial Keystone XL oil pipeline, which supporters say would create thousands of new jobs.
“Any effort to tie Keystone to the payroll tax cut, I will reject. So everybody can be on notice,” Obama said during a press conference with Canadian Prime Minister Stephen Harper. Last month, the administration postponed a decision on the pipeline to allow for an extended environmental review that’s expected to last until after the 2012 campaign.
“The payroll tax cut is something that House Republicans and Senate Republicans should want to do regardless of any other issues,” Obama added. “The question’s going to be, are they willing to vote against a proposal that ensures that Americans, at a time when the recovery is still fragile, don’t see their taxes go up by a thousand dollars? So it shouldn’t be held hostage for any other issues that they may be concerned about.”
But Republicans insist Obama is playing politics with a project that has strong bipartisan support, including from labor unions, and which would help boost the lagging economy. Harper has also publicly pressured the administration to approve the deal.
” While it might make for inconvenient politics for the President, the administration is out of excuses and running out of time. Prime Minister Harper has made clear that if this project is not approved, American competitors, such as China, will gain from our loss,” House Speaker John Boehner said in a statement before Obama’s remarks. “This project is good for the economy, and it’s good for America’s energy security.”
Boehner spokesman Brendan Buck responded to Obama’s veto threat by suggesting the House GOP bill addressing the payroll tax cut and pipeline issues should be a point of common ground. “If President Obama threatens to veto it over a provision that creates American jobs, that’s a fight we’re ready to have,” he said in a statement.
Obama denied that politics played a role in the project’s delay, saying a “big project with big consequences” deserves thorough review, which the State Department is conducting.
Harper said he discussed the issue during a meeting with Obama today and that he accepts that Obama is “following a proper process to eventually make the decision here in the United States and that he has an open mind in regard to what the final decision may or may not be.”

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The President is so disingenuous in this because he is talking out both sides of his mouth. On one hand he claims that not extending the payroll tax cuts (reducing funding for Social Security by the way) will result in hurting Americans at a time when they are most vulnerable. Yet, most Americans agree that jobs are the issue and the President brushes aside the impact of ignoring the jobs that could be created by moving the project forward. He talks a big game about shovel ready jobs but that is all it is talk. This study nonsense is ridiculous because this project has already faced three years of scrutiny and the Canadians have already agreed to move the pipelines path once to accommodate environmental concerns. They must think the typical American is stupid to say this is not political when they are postponing it until after the elections. If you care about jobs Mr. President and JOBS is your focus then stop cherry picking and playing politics in order to assuage the environmental lobby. This President is putting his re-election ahead of what is best for this country. The Democrats always talk about compromise until they have to actually put something of worth on the table. I think you would be hard pressed to say that a payroll tax extension that is not paid for in trade for a project that will reduce our reliance on oil from countries hostile towards the US and create tens of thousands of jobs to start is a good trade. It is the President who is being an obstructionist. Something he continually charges the GOP with and the MSM lets him get away with it.
Posted by: MnNice | December 7, 2011, 5:33 pm 5:33 pm
“Obama Rejects GOP Bid to Tie Payroll Tax Cut to Keystone Pipeline Approval”
.
oBama: don’t you go ummm…. errrr…. uhhhh…. creatin’ no jobs now….. that would totally ruin…. uhhhh….. ummmm… my…. uhhhh…. plan, yeah my plan…. for …… uhhhh, errrr….my re-election.
Posted by: Michelle Shu Jas | December 7, 2011, 5:43 pm 5:43 pm
Bill Clinton would say, “It’s jobs, Stupid!”
Posted by: Bob Diamond | December 7, 2011, 5:46 pm 5:46 pm
If there were not some serious reasons to wait he would never play politics with this. Just look at the rhetoric. If it’s like the gas drilling, then they should definitely wait until all the environmental issues are worked out. Yes environmental issues, as in chemicals in your drinking water that could kill you, issues.
Posted by: sameagain | December 7, 2011, 5:59 pm 5:59 pm
The Pipeline is bad for the environment. It’s bad for the people’s land upon which it will encroach and bad for the health and welfare. This is the dirtiest form of energy on the planet. It destroys hundreds of thousands of gallons of fresh water. Before pushing this through – people need to educate themselves on the ramifications. Some things aren’t worth the price we pay in human sacrifice.
Posted by: Taintedbylies | December 7, 2011, 6:25 pm 6:25 pm
As well he should — I am tired of them sticking all kinds of things in bills — each one should be specific to one thing or the line item veto should be brought back.
Posted by: Paulet | December 7, 2011, 6:33 pm 6:33 pm
Republicans are as sleazy as big oil. Oil = Bush. Oil = Cheney. Get your heads out of your rear ends.
Posted by: Bing | December 7, 2011, 6:34 pm 6:34 pm
The pipeline will happen with the only question the routing. The start point and end point is not in question so it should be possible to start construction of those portions which are not in question. Start creating jobs NOW!!!
Posted by: Common _ Sense | December 7, 2011, 6:38 pm 6:38 pm
Almost a full term and change has become worse. We have more Occupy protests about the unhappy state of our nation since the Civil Rights movement. Looking back at Mr. Obama’s victory in 2008 with coffetti and loud music, songs and dance, and millions of followers. They didn’t know then that we would have a worser economy three years later.
Posted by: young_voter | December 7, 2011, 9:13 pm 9:13 pm
It is confusing at best why the GOP would stand in the way of continuing tax cuts for average Americans? If they are really for tax cuts for all Americans and not just for the super rich and big corporations then why do they block this? They want to protect their precious “job creators” but couldn’t care one whit about those who hold a regular job or are looking for one. If Americans were smart the GOP would get approximately 1% of the national vote, because those are the only Americans they serve.
Posted by: hopesprings52 | December 7, 2011, 9:59 pm 9:59 pm
The only Job Obama cares about is his
OBAMA__________VS____________AMERICA
Posted by: Yep I said that | December 7, 2011, 10:10 pm 10:10 pm
Sick of political games to benefit the people. Both parties are to blame and we need to vote all incumbants out of office. All not show favorttism to either party. They are a disaster. Worst administration in the history of this country.
Posted by: Steve | December 7, 2011, 10:39 pm 10:39 pm
It just seems to me that each of these things should be judged on their own merits and not tied together. Isn’t that the point of the government?
Posted by: steve | December 7, 2011, 11:00 pm 11:00 pm
They didn’t know then that we would have a worser economy three years later.
Posted by: young_voter | December 7, 2011, 9:13 pm 9:13 pm
You are quite apparently too young to be able to follow the economy, the stock market, job reports, GDP growth, etc. And the word is ‘worse’ not ‘worser’.
Posted by: Jim | December 7, 2011, 11:02 pm 11:02 pm
While voting incumbents out is a legitimate form of political action, when there is a given incumbent that is threatened in this way, the lobbyists and their financiers, the corporations and unions, select and promote some pledgebot challenger who is engineered to slake the voters’ thirst for change only to become installed as the new incumbent lap dog for the same handlers that managed the old incumbent, regardless of party. That is why many perceive it as corrupt beyond electoral reform. That is also why a constitutional amendment is needed that will make the corrosive, institutionalized lobbying activities that have taken over the legislative branch unconstitutional.
Posted by: sameagain | December 7, 2011, 11:05 pm 11:05 pm
Get the country producing Obama – what’s so hard about that? Obama would rather play politics, class warfare, divisiveness, and the blame game rather than do what the country needs. Production.
Posted by: EPU | December 7, 2011, 11:08 pm 11:08 pm
The GOP is incapable of doing anything without muddying the water. What a bunch of losers!
Posted by: john locke | December 8, 2011, 12:31 am 12:31 am
Why shouldn’t the Republicans tie it to the Pipeline? Obama and the Democrats keep talking about jobs, yet do everything in their power to kill jobs. This Pipeline could provide 200,000 jobs, and Obama kicks it down the road. We all know that he has no intentions of allowing this pipeline. It could help America, can’t have that.
Posted by: Palerider1957 | December 8, 2011, 12:46 am 12:46 am
The GOP should not hold the middle class hostage to secure deals for the oil lobby. It says it all when the GOP treats a payroll tax cut like it is something that has to be offset by favors for billionaires. They aren’t even asking for a revenue neutral solution…. they are just throwing a deal in the bill for an oil company!
Posted by: Blip | December 8, 2011, 12:51 am 12:51 am
Let me get this straight, we are in the process of cutting budgets because of a huge deficit and Republicans have shouted from roof tops “What part of we’re broke don’t you understand?” Now we’re supposed to support this expenditure? Who is this really going to benefit? If it’s big oil, then maybe they could pony up the funds from those massive profits they have been making. Ah, but that would mean that there would be less money for the campaign coffers of Boehner and the Tuesday, Wednesday, Thursday club (you know, congress people who fly into DC on the Monday night red eye and are really too tired to work on Tuesday until party time on Tuesday night and report to capitol hill on Wednesday with a colossal hangover until Wednesday night when it’s time to party again and report to capitol hill on Thursday with another colossal hangover but looking forward to getting on the private jet at noon and heading out for the campaign trail.) Such diligent, caring representatives we have.
Posted by: howdymo1 | December 8, 2011, 12:58 am 12:58 am
The pipeline is under review and may or may not be approved , the conservatives know this and are trying to do an end around the laws of the land ; just because people are hurting they hope they can make a “jobs” issue out of what should be a cut and dried legislative procedure, i.e. extending a small tax cut for the Average American worker in a time of extreme economic strain .They don’t have any problem fighting like animals to get the Bush tax cuts for billionaires extended for themselves and their crony 1% friends though…
Posted by: glenntip | December 8, 2011, 1:17 am 1:17 am
“”"”"”"”"Obama denied that politics played a role in the project’s delay, saying a “big project with big consequences” deserves thorough review, which the State Department is conducting.”"”"”"”" Uh, don’t you think Obamacare is a “big project with big consequences” you clueless nitwit? You sure didn’t review it much. This guy gets worse everyday.
Posted by: commonsenseparty | December 8, 2011, 1:26 am 1:26 am
“Uh, don’t you think Obamacare is a “big project with big consequences” you clueless nitwit? You sure didn’t review it much. “=============The CBO and the Rand Corporation ( both non-partisan groups ) did extensive reviews of “Obamacare” before it was passed into law , both groups handing out positive reviews , particularly in comparison to the GOP alternative proposals ( i.e. doing nothing ) .
Posted by: chilebegoodtome | December 8, 2011, 1:46 am 1:46 am
chilebegoodtome —– So I guess you didn’t read Tom Coburns plan? BTW, given the many problems we are having with Obamacare and not simply the Constitutionality of it, it is guaranteed to not be “deficit neutral”. Furthermore, it is not lowering insurance as Obama has promised (big surprise there huh).They do reviews of the information they are given and that’s it. Can you explain how they both missed $500 Billion being double counted? Neither could Obama!
Posted by: commonsenseparty | December 8, 2011, 2:26 am 2:26 am
Meanwhile, Roberton Williams, a senior fellow with the Tax Policy Center, this week called on lawmakers to revive the so-called Making Work Pay tax credit in lieu of continuing the payroll provision. According to a report:
“The credit was the tax benefit for working-class families included in the 2009 stimulus. Congress did not extend the credit at the end of 2010, voting instead to approve a 2-point reduction in the payroll tax. Williams argued at the time that the tax-cut swap would end up hurting the working poor, claiming the stimulus credit was more valuable for them than the payroll provision. Now that the payroll tax cut is set to expire, Williams said Congress should seize the opportunity to reverse course and bring back Making Work Pay.
“It’s got more bang for the buck because it directs more money to people who will spend it,”
“The stimulus credit gave single workers up to $400 a year, and couples up to $800. Many workers got the full amount, provided they reported a nominal income over the course of the year.
By contrast, the value of the payroll tax cut depends entirely on the size of a taxpayer’s income.
The more they make, the more it’s worth — and vice-versa. For instance, it would be worth $2,000 for someone earning $100,000. But for someone earning $10,000, it would be worth just $200 — less than the same taxpayer would have received under Making Work Pay.
The Tax Policy Center estimated last year that roughly 51 million households would be negatively affected by the expiration of the Making Work Pay credit.”
“Williams said on a dollar-for-dollar basis, the Making Work Pay credit is more effective. He recommended reviving it, and doubling it so it’s worth $800 for single filers and $1,600 for joint filers. But, Williams conceded, the Making Work Pay cut is not currently on the table in Congress.”
Posted by: EPU | December 8, 2011, 3:54 am 3:54 am
Bing,
Actually it goes like this: no American oil = Iranian Oil = support radical dictators in the middle east oil. Now you get it?
Meanwhile Obama is going back to his lame playbook of “paying their fair share” talk again. What he needs to realize is that he has completely ignored fat cat companies Fannie Mae and Freddie Mac who didn’t play by the same rules as Americans who owe Americans more than $140 billion and are lavishing big benefits on their executives – and where is Obama? At the podium promoting radical liberalism ignoring the fat cats Fannie Mae and Freddie Mac who is exploiting American taxpayers.
Posted by: EPU | December 8, 2011, 4:08 am 4:08 am
I guess a lot of you aren’t following the pipeline issue. The reason they are needing to review the pipeline is because the route Transcanada wanted to use went right through the Ogallala aquifer in Nebraska which supplies water a number of states. I would hate to think what that would do if there was a leak. I am glad Obama is waiting to approve this. I am all for job creation and think it would be great for our country, but the routte needs to be changed.
Posted by: CDG | December 8, 2011, 4:41 am 4:41 am
And so, after traversing the country smugly denigrating Congress for not addressing his “Jobs Bill”, (which, in truth, is nothing but another flawed spending plan), Obama is now threatening to veto the Keystone Pipeline which will provide thousands of good jobs for the Middle Class that Obama says he’s fighting for. Joe Wilson was absolutely correct, Obama Lies!! I hope Obama’s direct assault against business and free enterprise is recognized and remembered next November. This economy recovers the day after it becomes obvious that Obama will no longer be in control.
Posted by: BubblerDad | December 8, 2011, 5:55 am 5:55 am
Honestly, Obamacare does have the potential to hurt the GOP permanently. Roosevelt’s policies were opposed very strenuously by some at the time….. but history views them very kindly. If you were a Republican during the Clinton years, you know how scared we were (I regret that I was a Republican back then). I remember the conversations we were having about Hillary care…. and how if it passed, the public would forever reward the Democrats. But the Republicans responded, essentially, with Obamacare (though they didn’t call it that back then) and Clinton found it too conservative so it died on the vine. After years of Republican rule, they never managed to do anything to fix healthcare…. and now that Obama has leaped on the opportunity…. the realize what a mistake they have made and are trying to stop him.
Posted by: blip | December 8, 2011, 7:11 am 7:11 am
I’m confused, isn’t the Pipe Line part of Obama’s Jobs Program?
I heard this project was shovel ready.
Why would he be against it?
I don’t think we are getting all of the pertinent info here.
Posted by: Noz | December 8, 2011, 7:13 am 7:13 am
According to paperwork filed by TransCanada, the CANADIAN company wanting to build this pipeline, they stated they would create between 3500 and 4200 jobs for this pipeline. AND, they did not guarantee these jobs would be filled by US workers. AND, the dirty tar sand oil they would transport to the Gulf would NOT be earmarked for our use only. The refined products would be sold on the world market, just like all the other refined products from the Gulf. The only really big winners here, if this goes through, are TransCanada and Big Oil……….
Posted by: Searambler | December 8, 2011, 9:19 am 9:19 am
“The only really big winners here, if this goes through, are TransCanada and Big Oil……….”
Remind us who China is rooting for.
Posted by: foggy | December 8, 2011, 10:56 am 10:56 am
why can’t they pass a clean bill????? WHY must they always tie something in that mars the intent of the original bill that they KNOW is not liked. Why do they have to such babies – either party? THEY ARE RIDICULOUS!!! Also, since this may or may not create American jobs, may or may not benefit America and the profits all seem to go out of the US, Tell me again HOW this is good for the US????
Posted by: pksk531 | December 8, 2011, 2:21 pm 2:21 pm
Why would anyone with any ethics tie a pipeline authorization to extending unemployment benefits? That is ludicris. Both parties have been playing games for years, and have been milking this country of it’s labor, natural resources and intellectual property like a cash cow business going down the toilet. Disban the two parties, and exlile any presnt and past members from participating in politics. Elect a new regime, with the campaing promise of prosecuting the former regimes and getting the country’s money back. Remember…. 9-11, WMDs, Afghanistan, Iraq, Mortgage scams, derivatives, dotcom bubble, insurance fraud, Bernie Madoff, Pat Tillman, credit default swaps, the bailouts, Abu Gahrib, Gauntanamo, etc……. all non-partisan crimes by our US government. It’s not Democrat vs. Republican…. it’s us vs. US government and US corporations. End of disscusion.
Posted by: Maserati | December 13, 2011, 5:34 pm 5:34 pm
Honestly, the US should try to do business with Canada more. Yet the GOP is more concerned with the quick Band-Aid jobs in oil. Get more high tech jobs and put college educated Americans to work in finding cleaner energy solutions.
Posted by: Honest American Markus | December 13, 2011, 5:40 pm 5:40 pm
It is dirty to tie the pipeline to any bill. As a victim of the BP oil spill I know first hand how distructive oil can be. It ruined our gulf, murdered our marine life, dirtied the beaches and distroyed jobs. Maybe we should legislate help for technology that harnesses the wind and sun. Big oil would oppose this unless they could get lots of our money for it. Let’s face it Big Oil controls the shots. Even O’bama was soft on BP, capping the amount of their liability. I am small business. I am still waiting for help.
Posted by: Cary Schwencke | December 13, 2011, 5:45 pm 5:45 pm
I don’t know why the Republicans are tripping trying to tie a bill to the unemployment and tax credit bill with the pipeline project that is said to be not ready and needs allow for an extended environmental review that’s expected to last until after the 2012 campaign. It is a good project but if it needs more reviews then we should wait to it can be done properly. Furthermore all them in Congress are wealthy and the economy has no effect on their pockets thats why nothing can get done because they keep staling coming up with things to attach to every bill they come up with and is not telling the whole story thats why they all need to look for another job in 2012 acting like children and holding people that has worked hard for a little pay hostage to s…. that should be voted on seperately. And if that pipeline deal may have an effect on the environment I would rather that they do more research before rushing into it because they can always transport oil from Canada by ship or truck so what’s the big deal instead of messing with the environment I would rather that the oil be transported by ship instead of a pipeline! And I would rather see Mitt Romeney over Newt win the Republican party. Mitt don’t have to lie and be a cold blooded liar and l cheat like his opponent Newt. Mitt will beat Newt out in the long run because he is a better opponent even if I don’t vote Republican? The Democrates and Republicans needs to post everything in their plans or bill so we the people will know what’s all in it and really explain it in detail so we the people won’t be missinform since the other party is always lying and exaurating on the other the people that gets their news through Fox and others that is missinforming people will see and know for themselves!
Posted by: DarknLovelly | December 13, 2011, 6:10 pm 6:10 pm