Senate OKs short-term extension of payroll tax cut

Published on Sat, Dec 17, 2011 at 23:36 |  Source : PTI

Updated at Mon, Dec 19, 2011 at 20:07  

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Washington, Dec 17 (AP) US senators racing for the exits after a year of bitter battles passed legislation today that would extend a Social Security payroll tax cut and jobless benefits for just two months, setting the stage for the next fight until February. While a partial victory for President Barack Obama's year-end jobs agenda, the measure awaiting House approval next week contains a provision demanded by Republicans to pressure the White House into approving construction of a Canada-to-Texas oil pipeline that promises thousands of jobs. Democratic and Republican leaders opted for the short-term extension after failing to agree on big enough spending cuts to pay for a full-year renewal of the payroll tax cut. The two percentage point tax cut affects 160 million taxpayers. The weekly jobless payments average about USD 300 for millions of people who have been out of work for six months or more. The measure was approved by an 89-10 vote during a Saturday session. Votes were scheduled later today on a USD 1 trillion-plus catchall spending measure setting the day-to-day budgets of 10 Cabinet agencies. The House cleared the spending bill yesterday. In a statement, White House communications director Dan Pfeiffer indicated Obama would sign the two-month extension measure, saying it had met his test of "preventing a tax increase on 160 million hardworking Americans" and avoiding damage to the economy recovery. The statement made no mention of the pipeline. (AP) ASY

  

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