Editorial: Compromise returns to Congress?
President Barack Obama speaks to continue to push Congress to act to extend the payroll tax cut and unemployment insurance through the end of the year (Feb. 14, 2012) Credit: AP
Congress still has to fill in the details of its tentative deal to extend the payroll tax holiday and unemployment insurance, issues that had bollixed up Washington for months. While some provisions are meritorious and others not so palatable, agreement amid the partisan fires is significant.
Mindful of single-digit approval ratings in a tumultuous election year, leaders of both parties decided the best strategy is to stop the gamesmanship and get on with the nation's business. Finally.
Congress is expected to vote Friday on a bill to keep payroll taxes at the reduced rate of 4.2 percent through the end of the year, instead of having them rise 2 percentage points at the end of February.
House Republicans had stalled an extension for months because they wanted cuts in government spending to offset approximately $94 billion in lost revenue. Democrats insisted on raising taxes on the wealthy.
Instead, the GOP caved on the offsets, fearful Republicans would take the brunt of the blame for letting the payroll taxes rise. So the result will be more debt instead, one of the reasons this page opposed the extension.
On the other side of the ledger, Democrats who wanted to continue unemployment insurance for 99 weeks agreed to a rolling cap that gradually reduces it to 73 weeks by year's end. The GOP went along because a mix of new revenue will cover the cost.
Governing involves compromise, not ultimatums. Only the politics got Congress to focus on the policy.
