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House votes down payroll tax extension; no additional Fannie & Freddie fees for now
U.S. House votes not to extend payroll tax cut for two months; want full year instead
The U.S. House just voted down the two-month extension of the payroll tax cut passed by the Senate Saturday, leaving the cut's future in doubt heading into the holidays.
It also means, for now, that the proposed increase in fees charged to banks that issue mortgages backed by Fannie Mae and Freddie Mac won't happen. (Read more about that plan here.) At the same time, House leadership has stated support for that plan in the past, so this seems more of an issue with the length of the extension rather than how it is paid for.
House Republicans say they want a full-year extension of the tax cut instead and are requesting a formal conference with the Senate to settle the issue. The Senate passed the two-month extension by an 89-10 vote after a bipartisan agreement. Senate leaders have said they don't plan to call their members back to Washington to renegotiate the agreement.
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