U.S. House agrees to payroll tax cut extension
U.S. House Replication leaders have backed down from their opposition to a two-month payroll tax cut extension and signed off on the Senate's proposal before a year-end deadline.
The agreement also renews unemployment benefits for about 2 million people, according to The Associated Press. House Republicans opposed the Senate's proposal, pushing instead for a year-long extension. The payroll tax rate will remain at 4.2%, below the normal 6.2%, while lawmakers hash out a longer-term solution. An increase in the tax rate would have raised Social Security taxes about $1,000 a year for someone earning $50,000.
U.S. Rep. Chellie Pingree called the agreement "a victory for families in Maine and across the country," while U.S. Sen. Olympia Snowe said it was "welcome news" and called for Congress to cancel its recess and return Jan. 3 to work on a long-term plan.
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