Boehner Gives In to Pressure, Okays 2-Month Payroll Tax Cut
House Speaker John Boehner reversed course on Thursday, accepting a two-month band-aid payroll tax cut as an interim measure to allow time to come up with a longer-term deal to keep more money in taxpayers' pockets. Boehner had steadfastly opposed the two-month extension passed by the Senate, but pressure from the White House, congressional Democrats and even some members of Boehner's Republican party forced Boehner to relent.
Under the deal, the payroll tax deducted from American workers' paycheck will remain at 4.2 percent instead of reverting to 6.2 percent, the actual rate mandated under normal economic times. The reduction to the payroll tax rate originally occurred last year, but would have expired on January 1st if no action had been taken. The higher rate would amount to another $1,000 being deducted from workers' check annually, or about $40 a week.
The new agreement also makes changes to the legislative language which will ease the administrative burden on businesses implementing the plan, and a commitment to continue negotiating a one-year extension for the payroll tax cut, as well as additional benefits for Americans. Boehner noted in his announcement that a deal had been reached that both House and Senate leaders will ask their respective legislative bodies to pass the extension before the Christmas holiday.
|
