Payroll Tax Cut Rallies for Bipartisan Agreement

A deal is headed towards congress for approval on Thursday. Democratic and Republican leaders are rallying for support for the bipartisan agreement. If approved it could mean payroll tax cut for 160 million U.S workers in 2012. This would also be a victory for Obama and his fellow Democrats.

The deal is expected to be approved by both the Senate and the House of       Representatives. This package includes renewing expiring jobless benefits for millions of long-term unemployed and preventing a steep pay cut for doctors who treat the elderly Medicare patients. With Congressional approval Obama would be able to sign the $150 billion package in to a law by February 29th. That is, before the tax cut and unemployment benefits expire. This payroll tax cut could give an average family up to a $1000 extra this year. The workers would also continue to pay 4.2 percent in the Social Security retirement system instead of 6.2 percent.

 

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