Payroll tax cut approved by Congress
After a long-winded debate, the payroll tax cut negotiations were passed by Congress by a 293-132 vote.
The plan will cost approximately $150 billion to extend a lowered payroll tax throughout the year, continue unemployment benefits and fix a payment program for physicians that treat Medicare patients. The cost was partially offset by a $15 billion provision, which will require federal workers to contribute 1.5 percent of their wages to their pensions for the next decade.
If the package moves forward, payroll tax will continue at a 2 percent lowered rate throughout 2012. It's projected that 160 million U.S. workers will benefits from an extra $40 in their paychecks, which they could use to boost the economy.
Additionally, Democrats compromised on their initial request for 99 weeks of unemployment benefits. They came down to 72 weeks, during which the long-term unemployed can collect $300 weekly.
"I'm glad to see that Congress seems to be ... making progress on extending the payroll tax cut so taxes don't go up on all of you and 160 million working Americans,"said President Barack Obama at an appearance at a lock factory in Milwaukee, as reported by the Washington Post. "It will make a real difference in the lives of millions of people."
The plan will cost approximately $150 billion to extend a lowered payroll tax throughout the year, continue unemployment benefits and fix a payment program for physicians that treat Medicare patients. The cost was partially offset by a $15 billion provision, which will require federal workers to contribute 1.5 percent of their wages to their pensions for the next decade.
If the package moves forward, payroll tax will continue at a 2 percent lowered rate throughout 2012. It's projected that 160 million U.S. workers will benefits from an extra $40 in their paychecks, which they could use to boost the economy.
Additionally, Democrats compromised on their initial request for 99 weeks of unemployment benefits. They came down to 72 weeks, during which the long-term unemployed can collect $300 weekly.
"I'm glad to see that Congress seems to be ... making progress on extending the payroll tax cut so taxes don't go up on all of you and 160 million working Americans,"said President Barack Obama at an appearance at a lock factory in Milwaukee, as reported by the Washington Post. "It will make a real difference in the lives of millions of people."
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