Senate approves payroll tax cut, jobless benefits

Credit: WCBD

The measure buys time for negotiations early next year on how to pay for a year-long extension of the two percentage point payroll tax cut, the centerpiece of Obama's fall jobs agenda

By: Associated Press | WCBD News 2
Published: December 23, 2011

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WASHINGTON - The Senate has approved a two-month renewal of payroll tax cuts for every worker and unemployment benefits for millions, moving President Barack Obama closer to a convincing victory over Republicans who control the House.

The measure buys time for negotiations early next year on how to pay for a year-long extension of the two percentage point payroll tax cut, the centerpiece of Obama's fall jobs agenda. It would boost the paycheck of the average worker making a $50,000 salary by about $20 a week.

The House is expected to clear the measure shortly, capping a swift retreat by House Republicans.

Their move to force a holiday season confrontation with Obama and Senate Democrats had threatened to hit 160 million workers with a tax increase on Jan. 1, and it backfired badly.