UPDATE: President signs payroll tax extension - WXOW News 19 La Crosse, WI – News, Weather and Sports |

UPDATE: President signs payroll tax extension

WASHINGTON (WXOW) - President Barack Obama has signed legislation extending a payroll tax cut for two months. The action concludes an end-of-year drama that split Republicans and threatened a tax hike on 160 million Americans.

Obama acted Friday after the House and Senate approved the tax cut extension, which will maintain the Social Security tax at 4.2 percent. The legislation also extends unemployment insurance for jobless workers and forces Obama to make a decision within 60 days on whether to permit construction of an oil pipeline opposed by environmental groups.

By signing the bill, Obama capped nearly a week-long standoff with House Republicans who demanded a full-year extension. Under a deal reached Thursday, House and Senate leaders named negotiators to begin working on a longer-term bill.

==================================================

WASHINGTON (AP) - The House has passed a two-month renewal of payroll tax cuts for 160 million workers and unemployment benefits for millions of jobless, giving President Barack Obama a resounding victory over Republicans who control the House. The Senate approved the bill earlier Friday.

The measure was passed by voice vote in a virtually empty House chamber despite lingering grumbling from tea party Republicans. It buys time for negotiations early next year on how to cover the costs of a yearlong extension of the two percentage point payroll tax cut, the centerpiece of Obama's fall jobs agenda.

It would boost the paycheck of the average worker making a $50,000 salary by about $20 a week and would prevent almost 2 million unemployed people from losing jobless benefits averaging $300 a week.

**************************

 The Senate has approved a two-month renewal of payroll tax cuts for every worker and unemployment benefits for millions, moving President Barack Obama closer to a convincing victory over Republicans who control the House.


The measure buys time for negotiations early next year on how to pay for a year-long extension of the two percentage point payroll tax cut, the centerpiece of Obama's fall jobs agenda. It would boost the paycheck of the average worker making a $50,000 salary by about $20 a week.

The House is expected to clear the measure shortly, capping a swift retreat by House Republicans. Their move to force a holiday season confrontation with Obama and Senate Democrats had threatened to hit 160 million workers with a tax increase on Jan. 1, and it backfired badly.

 

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WXOW. All Rights Reserved.
For more information on this site, please read our Privacy Policy, Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Theresa Wopat at 507-895-9969. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.