Keystone or payroll tax cut

Kliphnote: Obama is more interested in appeasing his base than making jobs.

Obama threatens veto if pipeline decision is added to payroll tax cut 

By Ben Geman - 12/07/11 03:52 PM ET

President Obama has warned Republicans he'll veto an extension of the payroll tax if it includes a measure forcing quick approval of the Keystone oil sands pipeline.

“Any effort to try to tie Keystone to the payroll tax cut I will reject,” Obama told reporters Wednesday after meeting with Canadian Prime Minister Stephen Harper at the White House.

Obama said he would not accept a payroll tax holiday bill if Republicans add “extraneous” provisions, including a measure that would force quick approval of the controversial Keystone pipeline that would run from Canada to the southern U.S. 

House Republicans pushing for approval of the pipeline to bring crude from Alberta’s oil sands projects to Gulf Coast refineries have discussed linking it to extension of the tax holiday. The payroll tax cut extension is a Democratic and White House priority.

The Obama administration recently punted a final permitting decision on the controversial project until after the 2012 election as the State Department continues analyzing TransCanada Corp’s proposed pipeline.

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