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House rejects 2-month payroll tax cut extension

WASHINGTON — The House today rejected a plan backed by President Barack Obama to extend a 2 percentage point payroll tax cut for two months to buy time for talks on a full-year renewal.

Republicans controlling the chamber are instead demanding immediate talks with the Senate on a year-long plan.

If Congress doesn’t pass a bill by the end of the year, payroll taxes will go up for 160 million workers on Jan. 1. Almost 2 million people could lose unemployment benefits in January as well.

The House vote, 229-193, kicks the measure back to the Senate, where the bipartisan two-month measure passed on Saturday by a sweeping 89-10 vote. The Senate then promptly left Washington for the holidays.

Senate Majority Leader Harry Reid, D-Nev., says he won’t allow bargaining until the House approves the Senate’s short-term measure.

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