IANS/EFE | 18 Feb, 2012
The US Congress approved Friday a
10-month extension of the payroll tax cut and federal unemployment benefits.
The bipartisan measure, which passed the House of Representatives by a vote of
293-132 and prevailed in the Senate by 60 votes to 36, goes now to President
Barack Obama, who is expected to sign the bill as soon as he returns to
Washington from campaign events on the West Coast.
The extension of the reduction in the payroll tax from 6.2 percent to 4.2
percent represents a savings of around $1,000 for a median-income family.
Another provision of the bill ensures the continuance of special federal
unemployment benefits of up to 99 weeks for people who have exhausted state
benefits, though the duration of the payments is to be gradually reduced.
The biggest stumbling block in negotiations on the legislation was how to
finance the $100 billion cost of extending the tax cuts and jobless benefits.
While Republicans call for more spending cuts, the leader of the Democratic
minority in the House, Nancy Pelosi, said the budget deficit should be reduced
by increasing taxes on the rich.
Given the deep disagreement, resolving the question of paying for the bill was
left for another day.
