Multiple aides told CNN late Wednesday that Congressional negotiators have resolved all differences on a plan to extend a payroll tax cut and unemployment benefits while avoiding a fee cut for Medicare doctors.
The roughly $100 billion payroll tax cut, a key part of President Barack 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. The break is worth about $83 a month for someone making $50,000.
"I'm glad to see that Congress seems to be on the way to making progress on extending the payroll tax cut so that taxes don't go up on all of you," Obama told a crowd in Wisconsin Wednesday afternoon after a tentative agreement had been announced. "It will make a real difference in the lives of millions of people and as soon as Congress sends (the bill) to my desk, I will sign it right away."FULL STORY