Under the deal, the employee’s share of the Social Security payroll tax will stay at the current level, 4.2 percent of wages, through Feb. 29. In the absence of Congressional action, it would revert to the usual 6.2 percent next month. The government will also continue paying unemployment insurance benefits under current policy through February. Without Congressional action, many of the long-term unemployed would begin losing benefits next month.
In addition, under the agreement, Medicare will continue paying doctors at current rates for two months, averting a 27 percent cut that would otherwise occur on Jan. 1.
The new deal makes minor adjustments to make it easier for small businesses to cope with the tax changes and prevents manipulation of an employee’s pay should the tax cut extension fail to go beyond two months.
The House, which is in pro forma session, could seal the deal Friday unless a member raises an objection on the floor; the Senate would then do the same. If an objection occurs, Mr. Boehner will summon the full House back next week for a formal vote, he said.
Mr. Obama, who has reaped political benefits from the standoff, welcomed the outcome.
“This is good news, just in time for the holidays,” he said in a statement. “This is the right thing to do to strengthen our families, grow our economy, and create new jobs. This is real money that will make a real difference in people’s lives. ”
SO THEY ARE GOING TO NEED TO OVERREACH AGAIN IN 2 MONTHS.
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Under the deal, the employee’s share of the Social Security payroll tax will stay at the current level, 4.2 percent of wages, through Feb. 29. In the absence of Congressional action, it would revert to the usual 6.2 percent next month. The government will also continue paying unemployment insurance benefits under current policy through February. Without Congressional action, many of the long-term unemployed would begin losing benefits next month.
In addition, under the agreement, Medicare will continue paying doctors at current rates for two months, averting a 27 percent cut that would otherwise occur on Jan. 1.
The new deal makes minor adjustments to make it easier for small businesses to cope with the tax changes and prevents manipulation of an employee’s pay should the tax cut extension fail to go beyond two months.
The House, which is in pro forma session, could seal the deal Friday unless a member raises an objection on the floor; the Senate would then do the same. If an objection occurs, Mr. Boehner will summon the full House back next week for a formal vote, he said.
Mr. Obama, who has reaped political benefits from the standoff, welcomed the outcome.
“This is good news, just in time for the holidays,” he said in a statement. “This is the right thing to do to strengthen our families, grow our economy, and create new jobs. This is real money that will make a real difference in people’s lives. ”
SO THEY ARE GOING TO NEED TO OVERREACH AGAIN IN 2 MONTHS.
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