
Congress reaches payroll tax deal STORY HIGHLIGHTS Obama is poised to sign the tax cut agreement once it passes House and Senate votes could come on Friday The compromise raises the deficit by $89 billion over 10 years, the CBO says The deal extends payroll tax cut, unemployment benefits, and "doc fix" Washington (CNN) -- A bipartisan agreement to extend the payroll tax cut and unemployment benefits while avoiding a fee cut for Medicare doctors for the rest of the year could come to final House and Senate votes on Friday. The measure is a top priority for the White House. President Barack Obama issued a statement Thursday urging Congress to send it to him without delay and has said he will sign it as soon as it reaches his desk. "I thank the many Americans who lent their voices to this debate in recent months," Obama said in reference to his calls for people to pressure their elected representatives to pass the deal. "You made all the difference." However, none of the three Republican senators on the 20-member House-Senate conference committee that negotiated the compromise signed it, signaling possible GOP resistance when the measure comes up in the Senate. Other panel members including Senate Democrats and members of both parties in the House signed the deal to provide the needed majority for approval. House Speaker John Boehner, R-Ohio, earlier called the deal "a fair agreement and one that I support," while House Minority Leader Nancy Pelosi, D-California, said: "I don't see a scenario where our members will vote against it." Senate Democratic leaders also expressed support for the deal and noted the apparent split over it between Republicans in the Senate and House. "I don't get how not one Senate Republican conferee would sign a deal negotiated by their own party and endorsed by Speaker Boehner," Sen. Chuck Schumer, D-New York, told reporters. Each party's top member on the conference committee also endorsed the plan, with Democratic Sen. Max Baucus of Montana calling it "very good for the country" while GOP Rep. Dave Camp of Michigan said he was "confident this can be concluded ... and we're moving forward." The roughly $100 billion payroll tax cut, a key part of Obama's economic recovery plan, has reduced how much 160 million American workers pay into Social Security on their first $110,100 in wages. Instead of paying in 6.2%, they've been paying 4.2% for the past year and two months -- a break worth about $83 a month for someone making $50,000. The agreement came together this week after House Republicans dropped a key demand Monday, saying they would accept the extended payroll tax cut without including spending cuts elsewhere to pay the $100 billion cost. According to the nonpartisan Congressional Budget Office, the agreement would increase the federal deficit by $89 billion over 10 years, mostly through decreased tax revenue. Boehner defended the decision to move forward … [Read more...]















