Senate Democrats are vowing to kill the latest House bill to extend payroll tax cuts through 2012.
House Republicans passed the legislation late Tuesday in a partisan vote of 234 to 193.
"The bill just passed by House Republicans tonight is a pointless partisan exercise," Senate Majority Leader Harry Reid said. "The bill is dead on arrival. It was dead before it got to the Senate. The Senate will not pass it."
In addition the payroll tax cut extension, the measure also renews jobless benefits for the unemployed and includes a plan for building the Keystone XL oil pipeline.
The president has threatened to veto the pipeline project should the bill make it to his desk.
"The Democrats who run the U.S. Senate can't continue to hide and sit on the sidelines and hope that something else happens. It's time for the Senate to act," House Speaker John Boehner, R-Ohio, said.
Meanwhile, lawmakers are expected to adjourn soon for the year. Failure to extend payroll tax cuts will mean a tax hike for American families.