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Senate stalls on vote to extend US payroll tax cut Senate stalls on vote to extend US payroll tax cut
(about 2 hours later)
Senate Republicans are rejecting calls for a quick vote on a payroll tax cut bill that passed the House on Tuesday.Senate Republicans are rejecting calls for a quick vote on a payroll tax cut bill that passed the House on Tuesday.
The House bill would tie an extension of the tax break to provisions for a much-disputed oil pipeline, a clause Democrats and the White House oppose.The House bill would tie an extension of the tax break to provisions for a much-disputed oil pipeline, a clause Democrats and the White House oppose.
Democrats - who hold a majority in the Senate - want to vote down the bill and begin negotiations with the House.Democrats - who hold a majority in the Senate - want to vote down the bill and begin negotiations with the House.
But Senate Republicans say a separate financial bill must pass first, with a federal shutdown looming this weekend.But Senate Republicans say a separate financial bill must pass first, with a federal shutdown looming this weekend.
The Senate majority leader, Democrat Harry Reid, said the resumption of party posturing was not helping resolve the issues.The Senate majority leader, Democrat Harry Reid, said the resumption of party posturing was not helping resolve the issues.
"The sooner we put this useless partisan charade behind us, the sooner we can negotiate a true bipartisan solution that protects middle-class workers," Mr Reid said."The sooner we put this useless partisan charade behind us, the sooner we can negotiate a true bipartisan solution that protects middle-class workers," Mr Reid said.
But Senate Minority Leader Mitch McConnell, a Republican, said: "We ought to finish our most immediate concern first," referring to the spending bill that must pass if federal agencies are to remain open beyond the end of the week.But Senate Minority Leader Mitch McConnell, a Republican, said: "We ought to finish our most immediate concern first," referring to the spending bill that must pass if federal agencies are to remain open beyond the end of the week.
The looming deadline is the third time in 2011 that Congress has come close to failing to approve new funds to keep the government running.The looming deadline is the third time in 2011 that Congress has come close to failing to approve new funds to keep the government running.
But correspondents say Republican aides have raised the possibility of a backup measure to keep government running beyond the Friday deadline.
Pipeline 'rider'Pipeline 'rider'
Failure to reach a deal extending the payroll tax cut before the end of the year would see taxes rise for about 160 million Americans, the White House has said.Failure to reach a deal extending the payroll tax cut before the end of the year would see taxes rise for about 160 million Americans, the White House has said.
It says a family earning $50,000 (£32,000) would pay $1,000 more in payroll taxes next year if Congress does not act.It says a family earning $50,000 (£32,000) would pay $1,000 more in payroll taxes next year if Congress does not act.
The deal would also extend benefits for the long-term unemployed and delay a reduction in doctors' reimbursements for Medicare.The deal would also extend benefits for the long-term unemployed and delay a reduction in doctors' reimbursements for Medicare.
Lawmakers are divided on how to offset the estimated $180bn cost of the measures. Democrats would prefer to see taxes rise for top earners, while Republicans want to see the cash recovered through spending cuts. Lawmakers are divided on how to offset the estimated $180bn cost of the measures.
They have also attached the Keystone XL pipeline measure to the bill in an effort to extract a concession from the administration. Democrats have long argued for a tax on America's highest earners to offset the costs of extending the tax holiday, but correspondents say the party may abandon this demand to forge an eleventh-hour compromise.
Republicans want to see the cash recovered through spending cuts. They have also linked approval of the Keystone XL pipeline to the bill in an effort to extract a concession from the administration.
In November, the White House delayed approval of the project over objections from Nebraska and environmental groups.In November, the White House delayed approval of the project over objections from Nebraska and environmental groups.
The Obama administration has agreed to reassess the pipeline route, pushing a final decision on the project beyond the 2012 presidential elections.The Obama administration has agreed to reassess the pipeline route, pushing a final decision on the project beyond the 2012 presidential elections.