House rejects payroll tax cut extension

The House Tuesday rejected a bipartisan Senate compromise to extend a payroll tax cut for two months, along with unemployment benefits, leaving Washington uncertain about the fate of the tax benefit enjoyed by 160 million workers.

On a vote of 229 to 193, the House set aside the Senate bill and requested a formal conference with the Senate, setting up a showdown with the Democratic-controlled Senate and President Barack Obama, who has demanded that the House approve the short-term plan now to avoid a Jan. 1 tax hike.

Seven Republicans voted against defeating the Senate bill and sending the legislation to conference.

Shortly after the House vote, Obama called on House Republicans to "put politics aside" and allow a vote on the Senate bill.

"The American people are weary of it. They're tired of it," Obama said in the White House briefing room. "I'm calling on the speaker and the House Republican leadership to bring up the Senate bill for a vote and give the American people the assurance they need in this holiday season."

Obama said the two-month extension was necessary to give lawmakers more time to work out a full-year extension.

House Speaker John A. Boehner (R-Ohio) implicitly rejected the president's appeal.

"President Obama needs to call on Senate Democrats to go back into session, move to go to conference, and to sit down and resolve this bill as quickly as possible," Boehner told reporters.

House Republicans oppose the Senate bill "because the two-month extension will create more uncertainty for job creators in our country when millions of Americans are out of work," Boehner said.

The next step to resolving the situation is uncertain. Senate Majority Leader Harry Reid (D-Nev.) has pledged that he will not appoint Senate negotiators to restart talks.