Payroll tax cuts could expire as negotiations drag on
The February 29 deadline is fast approaching for the payroll tax cut extension, but lawmakers hardly seem close to making an agreement.
After private negotiations Thursday night, congressional Democrats have made their first concession in the debate over how to fund the payroll extension. Democrats proposed that unemployment benefits be shortened from 99 weeks to 93 weeks. Republicans have suggested that benefits be limited even further, to just 59 weeks in states that have the highest unemployment rates in the country.
Both sides expect negotiations to continue and better deals to be offered.
"Especially in the next couple of days, there'll be a lot of back-an-forth discussions, proposals and counterproposals," said Sen. Bob Casey Jr. of Pennsylvania, according to The Hill.
In December, Congress passed a two-month extension that lasts through the end of this month while they figure out how to pay for the $100 billion it will cost to extend the program through the rest of 2012. Congress members are under pressure to come to an agreement before a recess scheduled for the week of February 20th. If they fail to make a decision before the February 29 deadline, the payroll tax cut will expire and unemployment benefits will automatically be trimmed to 26 weeks.
After private negotiations Thursday night, congressional Democrats have made their first concession in the debate over how to fund the payroll extension. Democrats proposed that unemployment benefits be shortened from 99 weeks to 93 weeks. Republicans have suggested that benefits be limited even further, to just 59 weeks in states that have the highest unemployment rates in the country.
Both sides expect negotiations to continue and better deals to be offered.
"Especially in the next couple of days, there'll be a lot of back-an-forth discussions, proposals and counterproposals," said Sen. Bob Casey Jr. of Pennsylvania, according to The Hill.
In December, Congress passed a two-month extension that lasts through the end of this month while they figure out how to pay for the $100 billion it will cost to extend the program through the rest of 2012. Congress members are under pressure to come to an agreement before a recess scheduled for the week of February 20th. If they fail to make a decision before the February 29 deadline, the payroll tax cut will expire and unemployment benefits will automatically be trimmed to 26 weeks.
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