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A full-year extension of the tax cut had been embraced by virtually every lawmaker in both the House and Senate but had been derailed in a quarrel over demands by House Republicans. Senate leaders of both parties had tried to barter their own yearlong agreement a week ago but failed, instead agreeing upon a 60-day measure to buy time for talks next year. House GOP arguments about the legislative process and what the "uncertainty" of a two-month extension would mean for businesses seemed lame to many people when compared to the consequences of raising taxes and cutting off jobless benefits in the middle of the holiday season, and Obama and the Democrats were hard on the offensive. House Republicans finally resorted to a technical fix and the fact that Reid would name negotiators on the GOP's yearlong measure as reasons to reverse course and embrace the Senate measure. Friday's House and Senate sessions were remarkable. Both chambers had essentially recessed for the year, but leaders in both parties orchestrated passage of the short-term agreement under debate rules that would allow any individual member of Congress to derail the pact, at least for a time. None did. The developments were a clear win for Obama. The payroll tax cut was the centerpiece of his three-month, campaign-style drive for jobs legislation that seems to have contributed to an uptick in his poll numbers
-- and taken a toll on those of congressional Republicans. The two-month version's $33 billion cost will be covered by a 0.1 percentage point increase on guarantee fees on new home loans backed by mortgage giants Fannie Mae, Freddie Mac and Ginnie Mae
-- at a likely cost of about $17 a month for a homeowner with a $200,000 mortgage. The top Senate Republican, Mitch McConnell of Kentucky, was a driving force behind the final agreement, imploring Boehner to accept the deal that McConnell and Reid had struck last week and passed with overwhelming support in both parties. Even though GOP leaders including House Majority Leader Eric Cantor, R-Va., promised that the two sides could quickly iron out their differences, the truth is that it will take intense talks to figure out both the spending cuts and fee increases required to finance the longer measure. Republicans want to shorten the maximum length of unemployment benefits from 99 to 79 weeks, freeze the pay of federal civilian workers and make federal workers contribute more into their pensions
-- all ideas considered by the failed debt "supercommittee" this fall. The main provisions of the yearlong House measure cost about $200 billion, and the final version could cost more. Reid signaled a hard line for the House-Senate talks by assigning Sen. Ben Cardin, D-Md.
-- a strong advocate for federal workers -- to the Democratic negotiating team.
[Associated
Press;
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