REVOLT

House Rejects Payroll-Tax Cut Deal

Future of bill is uncertain.

Talk about a Grinchy measure. The House of Representatives on Tuesday rejected the bipartisan compromise to extend the payroll-tax cut—setting up a showdown with President Obama and the Democratically controlled Senate. The bill also would have extended unemployment benefits. The Senate agreed over the weekend to a two-month extension of the payroll-tax cut so the issues Republicans have been lobbying for Democrats to decide on would come up for debate by the end of February, but House Republicans were not happy with the compromise and showed it by rejecting the deal. Democrats blasted the GOP for rejecting the deal, while the House called for a formal conference with the Senate. The next step for lawmakers is uncertain, as Senate Majority Leader Harry Reid has said he will not appoint any negotiators should the extension fail to pass the House.