BILLS, BILLS, BILLS

Senate Rejects Tax-Cut Bills

But passes law that allows military to hold terror suspects.

Thursday the Senate voted to kill two plans, highlighting a divide among Senate Republicans. The minority party killed President Obama's plan to push payroll tax cuts--and make them more generous for workers--through the end of next year as well as GOP leader Mitch McConnell's effort to renew a 2 percent payroll tax cut. The dual defeats suggest potential for compromise within the Senate on the Social Security payroll tax cut which is a key part of the president's jobs program. The Senate has also approved a $662 billion defense spending bill that would require suspected terrorists, including those captured in the U.S., to be held by the military. Defense Secretary Leon Panetta, FBI Head Robert Mueller as well as the White House all oppose the costly bill, which would significantly increase the military’s role in dealing with terror suspects. Though the measure passed with flying colors in the Senate (93-7), the President has threatened to exercise his right to veto.