i m erin burnett. outfront, breaking news, federal failure. gridlock reigns in washington once again. now the payroll tax cut proposal passes the republican house. so why do we say failure? well, the republican bill, included a controversial oil pipeline that the president has said he would veto. so, pass, smash. we re at square one. congress again playing chicken with the clock. there are just 18 days left until the tax cut expires. if it does, the average american will pay about a thousand dollars more in taxes next year. now, this may not be economic armageddon. but because the tax cut is popular for everyone, both parties want to pass it. so why are they failing? the bottom line, in one afternoon we found a way to compromise and get this done with the help of robert and williams at the nonpartisan tax policy center. here goes, what we call a decent proposal. if you extended the payroll tax cut for only people making under $75,000 a year, the price tag would be about $48
i m erin burnett. outfront, breaking news, federal failure. gridlock reigns in washington once again. now the payroll tax cut proposal passes the republican house. so why do we say failure? well, the republican bill, included a controversial oil pipeline that the president has said he would veto. so, pass, smash. we re at square one. congress again playing chicken with the clock. there are just 18 days left until the tax cut expires. if it does, the average american will pay about a thousand dollars more in taxes next year. now, this may not be economic armageddon. but because the tax cut is popular for everyone, both parties want to pass it. so why are they failing? the bottom line, in one afternoon we found a way to compromise and get this done with the help of robert and williams at the nonpartisan tax policy center. here goes, what we call a decent proposal. if you extended the payroll tax cut for only people making under $75,000 a year, the price tag would be about $48
we have both sides still, the republicans say they are not raising taxes, temporarily,. reporter: it will not include the mail air surtax that president obama wanted. jenna: how will they do it. reporter: i talked to a lot of senate republicans who are very high on this deal. take some of the ideas to cut spending that were in the supercommittee that didn t get approved, take some of those cuts, and pay for the payroll tax cut with that spending reduction. jenna: it will be interesting to see if the president would be open to that. it seems sometimes the simplest solution is one that no one seems to find. that s why we call this the sanity freeze is on. jenna: the about the had words about the payroll tax extension. we are hearing from the republicans this moment that they may want to attach the keystone pipeline deal into some sort of package to pass the payroll tax extension. here is what the president had to say.