December 23, 2011
Update: Payroll Tax Cut Likely Extended
Yesterday, I blogged about the uncertainty around the expiration of the social security payroll tax cut that has been in place for 2011. Hours later, House Republican leaders agreed to basically the same deal they had rejected just two days prior, providing temporary resolution to a last minute debate.
The agreement includes extending the social security payroll tax cut for another two months, through February 29, 2012. This means the social security withholding rate would remain at its present 4.2% for now; government leaders will have two months to figure out a longer term plan. The House of Representatives, in a pro forma session, could pass the bill as early as today, December 23, 2011, after which the Senate would do the same. If an objection is raised on the floor of the House, then House speaker Boehner would summon Congress back for a formal vote next week. Never say never, but Thursday’s events made considerable progress towards securing an extension of the payroll tax cut.
– Jennifer