February 17, 2012
Congressional tax writers finalized a payroll tax cut deal earlier this morning that also includes an extension of unemployment benefits and a provision that prevents payments being cut to physicians who treat Medicare patients.
The $150 billion bill, which is likely to be the last major piece of legislation to pass before the November elections, includes a 10-month extension of a payroll tax holiday that the White House touts as saving the average worker about $1,000 a year. The deal was reached after Republican negotiators decided to drop their objection to instituting the payroll tax cut (worth about $100 billion) without offsets.
The deal was announced by Senate Finance Committee Chairman Max Baucus (D-MT) and House Ways and Means Committee Chairman Dave Camp (R-MI) at a press conference early this morning. President Obama has been talking about the need for payroll tax cut extension for weeks.
“Congress needs to extend that tax cut -- along with vital insurance lifelines for folks who've lost their jobs during this recession -- and they need to do it now, without drama and without delay,” Obama said Feb. 14. “No ideological sideshows to gum up the works. No self-inflicted wounds. Just pass this middle-class tax cut. Pass the extension of unemployment insurance. Do it before it’s too late. And I will sign it right away.”
While there was grumbling from three Senate Republicans who said they were shut out of negotiations on the deal, the conference committee has cleared the bill for a floor vote ahead of the week-long Presidents Day recess that begins this weekend. That vote could come as soon as Friday or may stretch into Saturday depending on last-minute vote whipping.
Source: ASAE Inroads, February 16, 2012
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