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Still no deal on payroll tax cut; Could cost Americans thousands of dollars
Feb 14, 2012 (WPMT-TV - McClatchy-Tribune Information Services via COMTEX) --
Imagine losing a thousand bucks or more from your paycheck each year. That is possible if Congress doesn't act. Legislators are once again debating the payroll tax cut.
This battle has been brewing on Capitol Hill for several months now. Yesterday, there were significant movements with the House republicans saying they will extend the payroll tax cut. But a deal is far from finished, pushing this deadline and millions of Americans to the brink.
An important deadline is looming over a 160 million Americans. If Congress doesn't negotiate an extension of the payroll tax cut, the average American will lose over a thosuand dollars a year from their paycheck each year.
"Congress needs to pass an extension of the payroll tax cut and unemployment insurance without drama and without delay and without linking it to some other ideological side issues," said President Barack Obama.
The delays date back to December when only a last minute extension saved millions from seeing the increase. Congress deferred the decision until the end of February. But now that deadline is here.
"We've been through this before, remember? We've seen this movie. We don't need to see it again. the time for self-inflicted wounds to our economy has to be over," said President Obama.
The Democrats are looking to extend the cut to 160 million Americans, saving them between $1,000 and $1,500 that would be taken from their paychecks each year. Republicans yesterday announced they would vote in favor of the tax cut dropping their demands to offset the $94 billion price tag. But, still no deal has been done.
"We extend the payroll tax because we need to economically and then for the medium and long-term we do the things that we need to do to reduce deficit and debt so that we can get fiscal house in order," said White House Press Secretary Jay Carney.
Two other issues attached to the tax cut extension, benefits for the long-term unemployed and a plan to stop a Medicare pay cut for doctors. House Republican leaders say they plan to continue negotiating those two issues while talking payroll tax cut.
If the tax cut is not extended, an American making $50,000 a year will lose about $20 a week. Someone that makes $100,000 a year stands to lose about $2,000 a year.
The deadline for the extension is February 29. The tax hike would go into effect immediately on March 1 if it is not extended.
___ (c)2012 WPMT-TV (York, Pa.) Visit WPMT-TV (York, Pa.) at www.fox43.com
Distributed by MCT Information Services
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