Reid Says House Bill on Payroll Tax Extension Is Dead in the Senate

December 9, 2011 - 12:40 PM

WASHINGTON (AP) — Senate Majority Leader Harry Reid says his chamber won't approve a House Republican bill extending the payroll tax cut that also clears the way for construction of a controversial oil pipeline.

House Republicans put the final touches on the payroll tax measure Friday. It would also give the Obama administration two months to grant permits needed for work on the proposed Keystone XL oil pipeline, which would run from Canada to Texas.

The pipeline is opposed by environmental groups but favored by business and some unions. Obama has threatened to kill the bill if opens the door for the pipeline to be built.

In a statement, Reid said if the House approves the payroll tax bill with pipeline language, they'd be wasting time "because it will not pass the Senate."