It was far from clear whether the two sides would be able to bridge the gap by year’s end. If they fail to do so, payroll taxes for 160 million Americans will rise in January to 6.2 percent, from 4.2 percent - an average annual increase of roughly $1,000.
Immediately after the vote, Speaker John Boehner released a letter to President Obama, saying that he agreed with him on the need for a full-year extension of the tax cut and unemployment benefits.
“There are still 11 days before the end of the year, and with so many Americans struggling, there is no reason they should be wasted,’’ Boehner wrote. “You have said many times that Congress must do its work before taking vacation. Because we agree, our negotiators and the House stand ready to work through the holidays.
“I ask you to call on the Senate to return to appoint negotiators so that we can provide the American people the economic certainty they need.’’
But in a surprise appearance in the White House briefing room immediately after the vote, Obama called on House Republican leaders to approve the Senate bill, saying that it was the only way forward.
Without such action, the president said, not only would taxes go up and millions of Americans would lose their unemployment benefits, but the economy would suffer as paychecks shrunk.
“Right now, the bipartisan compromise that was reached on Saturday is the only viable way to prevent a tax hike on Jan. 1 - it’s the only one,’’ Obama said.
Speaking with somber intensity, Obama, who had just returned from a ceremony at Andrews Air Base marking the end of the Iraq war, said that the stakes for Americans were high.
“This is not poker, this is not a game, this shouldn’t be politics as usual,’’ he said.
“The recovery is fragile but it is moving in the right direction,’’ Obama said, adding that failure to act quickly “could have an effect on the economy as a whole.’’
