Breaking News: Deal to Extend the Payroll Tax Holiday Close
POLITICO Breaking News
House and Senate negotiators are nearing a deal to extend the payroll tax holiday, jobless benefits and the Medicare reimbursement rate, sources said. Unemployment insurance and the Medicare Sustainable Growth Rate would be offset, and the payroll tax holiday would be extended without cuts to the budget.
The breakthrough comes one day after House Republican leaders announced they were willing to drop their insistence on paying for the payroll tax holiday.
Any deal still needs to meet approval of rank and file lawmakers in both chambers.
For more information… http://www.politico.com
What it is:
“The payroll tax holiday began in 2011, when the Social Security payroll tax on employees was reduced from 6.2 percent to 4.2 percent. This cut taxes by a $1,000 for a family with $50,000 in wage income. For a working family, that’s real money.”
What this means:
However, the payroll tax holiday was intended to be “temporary,” with little thought to what the word temporary meant. Originally enacted for one year, as 2011 drew to a close, a peculiar legislative battle developed among the President, the Senate, and the House of Representatives. The battle had little to do with the extension itself but rather the terms of the extension—specifically, whether the budget effects would be offset and, if so, how. And in classic Washington fashion, with fingers pointing all around, the debate devolved into chaos. as per Heritage.org
So, with that, we’re looking at a potential tax relief for Americans to be extended.
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