Congress working on extending payroll tax cut - WAOW - Newsline 9, Wausau News, Weather, Sports

Congress working on extending payroll tax cut

(CNN) -- Congress is scheduled to wrap up business for the year this Friday, but there's no agreement yet on extending the payroll tax cut.

Democrats and Republicans both support it.

"We can't leave for the holidays without passing a payroll tax cut for the middle-class," says House Minority Leader Nancy Pelosi.

"I do believe it's going to pass with bipartisan support," says House Speaker John Boehner.

While both sides support it, they disagree on how to pay for it.

"That's where the problem lies," says Peter Morici, a professor of International Business at the University of Maryland. "The Democrats are willing to pay for it with a tax on millionaires and you know how well that goes over with the Tea Party."

Another issue: a measure to fast-track plans for a controversial oil pipeline from Canada to Texas.

In their plan, House Republicans have tied the payroll extension to a provision that speeds up approval of the Keystone XL project.

"The American people want jobs. This is as close to a shovel ready project that you're ever going to see," Boehner says.

The State Department has said it won't make a decision on the Keystone project until 2013 to look into environmental concerns.

If the bill does pass the House, Senate Democrats say they'll nix the Keystone provision.

President Obama has vowed to reject any bill that includes it.

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