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Tuesday, December 20, 2011

postheadericon Hensarling: Temporary extension of tax break would 'do more harm than good'

Rep. Jeb Hensarling (R-Tex.) argued Tuesday that a two month extension of the payroll tax cut "would do more harm than good" because of the burden it would place on payroll software and said Republicans would vote Tuesday to appoint a conference committee with the Senate on the controversial legislation.

"Washington didn't consult with the real world," Hensarling said on CNN's American Morning. "Every single business group says a two month extension is totally unworkable, and will do more harm than good."

House Republicans have rejected a bipartisan bill passed by the Senate that would extend the tax cut for two months. Instead, they argue that the cut should be extended for a full year, which would enable them to avoid another politically unpopular fight in which Democrats are able to champion tax cuts before the election. But the Senate has said that they are unwilling to return before the end of the year to renegotiate a year-long extension, putting pressure on House Republicans.

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