It's Not the Keystone Pipeline That's Holding Up a Payroll Tax Cut Extension - It's the Democrats' Tax Hike On Job Creators

The only thing standing in the way of a payroll tax break extension for American workers is Senate Democrats’ tax hike on job creators. Republicans identified the payroll tax break as an area of common ground months ago -- but Democratic leaders have insisted on a small business tax hike that destroys jobs. Even Democrats like Senator Joe Lieberman (I-CT) admit raising taxes would “stifle the recovery.”

Instead of raising taxes on small businesses and hurting our economy, Speaker Boehner said the House will vote on legislation to extend the payroll tax break and create new jobs by approving the Keystone XL energy project delayed by President Obama. The Keystone XL energy project, unlike Democrats’ tax hike on job creators, has strong bipartisan, bicameral support. For example:

  • 47 House Democrats voted to require the administration to quickly act on the Keystone XL project, helping to pass the North American-Made Energy Security Act (H.R. 1938).
  • Nearly two dozen House Democrats wrote a letter to President Obama asking him to approve the Keystone XL project, saying it will “create 20,000 direct jobs, spur the creation of 118,000 spin-off jobs.” The Democrats note that several environmental reviews show “the Keystone XL Pipeline will have no significant impact on the environment.”
  • A bipartisan group of 14 Senators wrote a letter to Secretary of State Hillary Clinton in support of the Keystone project. The Senators said Keystone XL would “provide thousands of high-quality jobs for Americans and invest billions of private sector dollars in our nation's economy.”
  • Both of Montana’s Democratic Senators support the Keystone energy project, including Sen. Max Baucus (D-MT) who said, “We need to put Montanans back to work and cannot afford further delays to the Keystone XL pipeline.”
  • “The Keystone pipeline will create Montana jobs,” said Sen. Jon Tester (D-MT), “And it should not have to wait 14 months for an up-or-down decision…”
  • “I support the Keystone XL project,” said Rep. Mike Ross (D-AR). “You want to talk about shovel-ready projects, that’s one that’s shovel-ready,” reported Politico.
  • “I think the president’s wrong on this,” said Rep. Dennis Cardoza (D-CA) who is “inclined to vote for the GOP’s version of the payroll tax cut measure” because he supports both the payroll tax break extension and the Keystone XL jobs project, according to Politico.
  • “I probably would vote to accept the deal,” said Rep. Emanuel Cleaver (D-MO) on MSNBC’s Morning Joe.
  • “Rep. Gene Green (D-Texas) said he’s not swayed by Obama’s veiled veto pledge,” says Politico. “The Keystone is awfully important,” he said. The article highlights several other Democrats who support both the payroll tax break and the energy project.
  • “[T]he privately-financed Keystone XL pipeline project is projected to create tens of thousands of U.S. jobs in construction and manufacturing,” says the AFL-CIO. Organized labor, among Democrats’ key supporters, says “workers from all over the United States would benefit from the project.”

According to ABC News, Speaker Boehner said the Keystone XL energy project “is a ‘no-brainer’ and he called on Obama to support the ‘bipartisan proposal’.” The House will vote next week to extend the payroll tax break without raising taxes on job creators, and to approve the job-creating Keystone XL energy project. Learn more about the GOP jobs plan, and about House-passed bills expanding energy production to help create new jobs, at jobs.GOP.gov.