Majority Leader Reid Cuts Bipartisan Compromise Bills Down to Size

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Feb 11 2010

This afternoon, Reid sounded skeptical when asked if he thought today’s developments (Baucus/Grassley jobs bill, and the Dodd/Corker financial regulatory reform bill) mean Republicans will start cooperating with Democrats on legislation.

“I hope so,” the Nevada Democrat said. “I have a long list of disappointments where we start out holding hands, and we wind up pointing fingers at each other.”

Republicans, he reminded reporters, are “the party of no.”

The Democratic leader then slapped the hands of Baucus and Grassley by announcing that instead of taking up their legislation, the Senate would first consider a stripped-down jobs bill containing only four of its pieces. The rest of the plan, including extensions of various tax breaks such as the research and development tax credit, can wait until the Senate returns after next week’s President’s Day break.

Surviving Reid’s cut was a provision that would give employers an exemption from Social Security payroll taxes for each worker they hire this year, as long as the worker has been unemployed for at least 60 days. Employers also could take a $1,000 tax credit on their 2011 income tax return for every new worker retained for at least 52 weeks.

The other two pieces of the Baucus-Grassley bill that made the cut were an extension of federal highway and transit programs, and a provision that would reduce the cost of borrowing for state and local school and energy projects.


read more: http://www.portfolio.com/views/blogs/capital/2010/02/11/bipartisanship-breaks-out-in-washington/