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Home News GOP locks Keystone into tax cut bill
GOP locks Keystone into tax cut bill Print
A measure to speed up approval of a Canada-to-Texas oil pipeline will be included in the US House of Representatives' payroll tax cut bill, House Speaker John Boehner said Thursday according to reports.

The move by House Republicans marked a challenge to President Barack Obama, who warned on Wednesday he would veto any bill that linked quick approval of TransCanada Corp's Keystone XL pipeline to extending a tax cut for American workers that is due to expire on 31 December, Reuters reported.

Obama directed the State Department last month to conduct an additional environmental review of the $7 billion pipeline. That would punt the decision on whether to approve the project until after next year's presidential election, the news wire said.

Environmentalists say the pipeline would threaten Nebraska's Sand Hills region and lead to higher greenhouse gas emissions.

But Republicans, seeking to make the 700,000 barrels per day tar sands pipeline a jobs issue, want to take the decision over the project out of the hands of Obama and give it to an energy regulator.

"The Keystone pipeline would put tens of thousands of Americans to work immediately," Boehner told reporters after meeting with House Republicans to discuss how to move forward on the tax cut bill. "It has bipartisan support in the House and in the Senate."

However, Democratic leaders in the House and Senate have warned against linking the two measures.

Boehner said the pipeline was a "no-brainer," echoing comments of Canada's Prime Minister Stephen Harper, who met with Obama on Wednesday.

Both Republicans and Democrats want to pass an extension of the payroll tax cut in the next two weeks, but they are struggling to find the right formula.

If a Republican bill that is tied to Keystone passes in the House it could face an uphill battle in the Democratic-led Senate. Earlier this week five Democratic senators urged Senate Majority Leader Harry Reid to reject tying Keystone to the bill.

 

Source: upstream

 

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