Feb. 7, 2012 – The 20-member, bipartisan conference committee assigned to work out a payroll tax extension agreement will reconvene today and NAFCU will be keeping a watchful eye on discussions.
The goal of the committee is to come to terms on a full-year extension of the payroll tax cut and unemployment benefits. Late last year, a short-term agreement was reached that extended both through February. Under that agreement, the costs were offset by a hike in the guarantee fee charged by Fannie Mae, Freddie Mac and the Federal Housing Administration.
While there is a lot of support for the idea that the payroll tax cut should be extended for the full year, the issue is how to pay for it and what else to include as part of the legislation, NAFCU has learned.
When the committee met last week, much of the discussion focused on what provisions to include as part of the package. Flood insurance, additional changes to Fannie and Freddie’s guarantee fees, internet gambling and a Medicare “doc fix” are among the items that could be included in a final bill.
NAFCU lobbyists believe it is anything but certain that an agreement will be reached before the deadline. Progress has remained sluggish and neither party appears to be ready to capitulate. Last Thursday, Senate Democratic leaders threatened to push their own bill if the committee doesn’t come to an agreement soon.