Thursday, December 15, 2011

Government Shutdown

Government Shutdown
Republicans and Democrats in Congress have once again placed on the edge at the close of a session, by fanning their struggles for the reduction in payroll deduction for Social Security and try to avoid falling midnight tomorrow, a partial closure of the federal government.

"We have to prepare just in case," said Kenneth Baer, ​​Office of Management and Budget, warning that last night would notify contingency plans in case they run out of funds from Saturday and the latest partisan stalemate hurts him Christmas in much of the more than 2 million federal employees, including about 11,000 in Puerto Rico.

The central battle between the two sides was how to finance expansion throughout 2012 from the reduction in payroll deduction for Social Security has been implemented throughout this year and the Republicans' insistence that the federal executive to decide on only two months permits the evaluation of Keystone oil pipeline from Canada to Texas (USA).

"I think the federal government shutdown is not going to give," he said, for its part, the Resident Commissioner Pedro Pierluisi, who hopes that the worst assignments temporarily extend a few extra days to provide more room for negotiation.

Republicans passed the lower house on Tuesday, virtually along party lines (234-193), legislation that would expand during 2012 cut of 6.2% to 4.2% in the payment of Social Security payroll that has been in effect in 2011 and which has an impact of about $ 500 million in Puerto Rico.

But while the Democrats want to fund the reduction in the discount for Social Security through a tax of 2% to those with incomes over $ 1 million, the Republicans proposed to do so through a freeze on wages of employees federal and a gradual reduction in total jobs in the federal government.

Democrats have also objected that the government wants President Barack Obama in just 60 days review the future of the Keystone pipeline, a controversy that the White House wanted to put off the elections in November 2012.

"They're looking to score political points," said Democratic Majority Leader of the Senate, Harry Reid, whom the Republicans prevented a vote yesterday to bring the law on Social Security deduction passed in the House.

Reid wants to defeat the Republican plan to then lay the groundwork to "negotiate a solution that protects the middle class."

Senate Republicans prefer to take a first vote on the measure that allocates over $ 1 trillion (trillion, in English) to finance the remaining assignments of nine areas the federal government.

Until next September

Through this resolution would ensure the continuation of federal government operations through September 2012 and would take a bargaining important to Democrats.

"The most urgent things should be done first," said the leader of the Senate Minority Mitck McConnell (Kentucky), indicating that no major disagreements about budget-related projects and that the issue related to payment discount Social Security should be braided in conversations between Reid and Speaker of the House of Representatives, Republican John Boehner.

Reid said, however, still object to some initiatives of the giant budget bill.

The project on the reduction in payroll deduction for Social Security benefits also includes extending federal unemployment benefits.

The Republican plan, however, gradually reduced from 99 to 59 weeks the maximum of weeks a person could claim the federal and demands proof to show that the beneficiary does not use drugs.

In the midst of the struggle is also a measure that would postpone cuts in Medicare payments to doctors. The Republicans want to finance that part of the legislation eliminating federal funding for health reform.

To avoid last minute crisis, the White House recommended to Congress last night approved a resolution to temporarily remain in effect once the federal government allocations, with the hope that within a few days to resolve tax differences.

No details of the cuts

The remaining measures related to the federal budget are perhaps less thorny topic of talks between Democrats and Republicans.

But do not yet have a concrete idea of ​​how the cuts will end the 2012 budget, due to come into force in October.

"Our estimate is that the average cuts (in discretionary programs received Puerto Rico and other federal jurisdictions) will be between 8% and 12%. But not even have circulated the bill, so no details, "said Commissioner Pierluisi.

As soon run out of partisan intrigues of the time, federal lawmakers begin their Christmas holidays. The original plan was to close the morning papers, but that possibility seems to fade with each passing hour.

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