This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-16310008
The article has changed 7 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| US Republicans in climbdown on payroll tax deal | US Republicans in climbdown on payroll tax deal |
| (40 minutes later) | |
| House of Representatives Republican Speaker John Boehner has agreed to accept a bipartisan deal to extend a payroll tax cut, in an abrupt U-turn. | House of Representatives Republican Speaker John Boehner has agreed to accept a bipartisan deal to extend a payroll tax cut, in an abrupt U-turn. |
| He had refused a vote on the bill, which was passed by Republicans and Democrats in the Senate last Saturday. | He had refused a vote on the bill, which was passed by Republicans and Democrats in the Senate last Saturday. |
| Correspondents say the move amounts to a cave-in by House Republicans, and victory for President Barack Obama. | Correspondents say the move amounts to a cave-in by House Republicans, and victory for President Barack Obama. |
| The tax break is due to expire on 31 December, and would hit the pay slips of some 160 million American workers. | The tax break is due to expire on 31 December, and would hit the pay slips of some 160 million American workers. |
| The cut saves about $1,000 (£638) each year for an average US income. | The cut saves about $1,000 (£638) each year for an average US income. |
| Republican rift | Republican rift |
| Under the compromise, House Republicans get face-saving language on making the package more friendly to small businesses. | Under the compromise, House Republicans get face-saving language on making the package more friendly to small businesses. |
| And Senate Democrats will appoint negotiators to work out a year-long deal which was demanded by House Republicans and sought originally by Mr Obama. | |
| Key elements of the Senate bill remain: an extension of the tax cut and unemployment benefits for two months. | Key elements of the Senate bill remain: an extension of the tax cut and unemployment benefits for two months. |
| A Republican-backed clause forcing Mr Obama to make a decision on the controversial Keystone XL oil pipeline within 60 days also remains. | A Republican-backed clause forcing Mr Obama to make a decision on the controversial Keystone XL oil pipeline within 60 days also remains. |
| The new deal will require Senate and House approval. | The new deal will require Senate and House approval. |
| After briefing rank-and-file members of his party, Mr Boehner said in a news conference that the House would vote before Christmas. | After briefing rank-and-file members of his party, Mr Boehner said in a news conference that the House would vote before Christmas. |
| "We were here fighting for the right thing," Mr Boehner said when asked if he had caved. "It may have not been politically the smartest thing to do." | "We were here fighting for the right thing," Mr Boehner said when asked if he had caved. "It may have not been politically the smartest thing to do." |
| President Obama, who with his Democratic allies has kept up relentless pressure on Republicans over the stalemate, welcomed the breakthrough. | |
| "This is good news, just in time for the holidays," he said in a written statement. "This is the right thing to do to strengthen our families, grow our economy and create new jobs." | "This is good news, just in time for the holidays," he said in a written statement. "This is the right thing to do to strengthen our families, grow our economy and create new jobs." |
| Earlier in the day, the president read out messages at a news conference from voters who said the package would help them pay their heating bills, visit elderly relatives and treat their families to pizza dinners. | Earlier in the day, the president read out messages at a news conference from voters who said the package would help them pay their heating bills, visit elderly relatives and treat their families to pizza dinners. |
| Unlike other budget stand-offs this year, this one has exposed Republican divisions. | Unlike other budget stand-offs this year, this one has exposed Republican divisions. |
| Earlier on Thursday, Senate Republican Minority Leader Mitch McConnell broke his silence on the issue to urge his House colleagues to pass the measure. | Earlier on Thursday, Senate Republican Minority Leader Mitch McConnell broke his silence on the issue to urge his House colleagues to pass the measure. |
| Two freshman House Republican lawmakers also called for a vote, breaking the unified front shown by members of that chamber in a news conference on Tuesday. | Two freshman House Republican lawmakers also called for a vote, breaking the unified front shown by members of that chamber in a news conference on Tuesday. |
| Earlier in the week, other Republican senators lambasted their House colleagues for opposing the deal. | Earlier in the week, other Republican senators lambasted their House colleagues for opposing the deal. |
| And on Wednesday the Wall Street Journal's conservative editorial labelled the episode a "fiasco" that could end up re-electing Mr Obama. | And on Wednesday the Wall Street Journal's conservative editorial labelled the episode a "fiasco" that could end up re-electing Mr Obama. |
| Many Republicans were initially sceptical about extending the payroll tax break, which economists say would aid US economic recovery. | Many Republicans were initially sceptical about extending the payroll tax break, which economists say would aid US economic recovery. |
| As party leaders demurred over how to offset the $120bn (£76bn) cost of the plan, Democrats accused them of backing tax cuts only for the wealthiest Americans. | As party leaders demurred over how to offset the $120bn (£76bn) cost of the plan, Democrats accused them of backing tax cuts only for the wealthiest Americans. |
| Correspondents say Mr Boehner's about-turn reflects a realisation by Republicans that they would have faced blame for an effective tax rise on middle-class Americans in a general election year. | Correspondents say Mr Boehner's about-turn reflects a realisation by Republicans that they would have faced blame for an effective tax rise on middle-class Americans in a general election year. |