February 16th, 2012
02:15 AM ET

Congressional negotiators reach payroll tax cut deal

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."


Filed under: Barack Obama • Economy • Politics • U.S.
soundoff (14 Responses)
  1. gung hoe

    Wow what can ya do with that extra 20 bucks a week. Oh well it all adds up i guess

    February 16, 2012 at 3:38 am | Report abuse |
    • Loyal Democrat

      Spend it at TCU. 🙂

      February 16, 2012 at 3:21 pm | Report abuse |
  2. jamesporterz

    High Speed Universities offers all our students the opportunity to be taught by excellent instructors whose location or schedules preclude attendance at local weekly class meetings, check out online for more research

    February 16, 2012 at 7:32 am | Report abuse |
    • El Flaco

      America's CEOs drove the world's economy off a cliff, causing this recession, but they made a lot of money doing it. Now...

      The average American who is laid off takes 50 weeks to find a job, and it is usually for 20% less pay than their previous job.

      Because many workers can no longer afford to retire, new jobs are not opening up for new high school and college graduates.

      Many large corporations have a policy of not hiring unemployed people. They only hire people who have a job and want a new job. Their reasoning is that the unemployed person was laid off while other employees were not; therefore the unemployed person is probably unworthy of consideration.

      Large corporations in the same industries are making agreements not to hire each other’s employees to reduce turnover. So a programmer for Pear Computers cannot get a better job working for Wintel, no matter what his qualifications are. This reduces the employee to the status of an indentured servant.

      Economists are saying that an unemployed person over 55 will probably never find another full time job in his life.

      There are five unemployed people for every job opening. Most of the job openings are not where most of the unemployed are currently living.

      The minimum wage has declined from its all time high – in1970 – level in real dollars.

      Since 1970, during GOOD economic years, the income of the middle class has gone down while the income of the wealthy has skyrocketed.

      Since 1970, during BAD economic years, the income of the middle class has gone down while the income of the wealthy has skyrocketed.

      February 16, 2012 at 12:18 pm | Report abuse |
  3. Bill

    Here we wonder what's to become of the SocSec program when the first thing we do is cut the pay-in to that fund. The endless unemployment extension thing has come to the point where in many cases now it's a way of life and easy to collect unemployment checks...so why look for any sort of work. As soon as this runs dry the employment figures will suddenly improve...wait and see.

    February 16, 2012 at 8:06 am | Report abuse |
    • Mark

      Your post is somewhat off-topic, but correct. I own a very small business and I have recently offered jobs to two people, but they both decided to stick with unemployment. One of them didn't want to start at a lower level than his last job, and the other one didn't want a job that was mostly commission-based. As a result, I have found it to be too much of a hassle looking for someone to hire and I have stopped looking. I am a huge supporter of this president, but I don't agree with him on these endless unemployment extensions.

      February 16, 2012 at 10:18 am | Report abuse |
    • El Flaco

      I understand what you are saying.

      You are for tax cuts when a Republican proposes them.

      You are against tax cuts when a Democrat proposes them.

      You are a Conservative who believes what he is told to believe and changes his mind when he's told to change it.

      February 16, 2012 at 12:20 pm | Report abuse |
  4. banasy©

    I'm not a giant fan of the endless outsourcing that caused much of the unemployement...

    February 16, 2012 at 11:36 am | Report abuse |
  5. SEB

    These are possibly the 5 best sentences you'll ever read:

    Unfortunately, most voters don't know this.

    1. You cannot legislate the poor into prosperity,

    by legislating the wealth out of prosperity.

    2. What one person receives without working for,

    another person must work for without receiving.

    3. The government cannot give to anybody anything that

    the government does not first take from somebody else.

    4. You cannot multiply wealth by dividing it.

    5. When half of the people get the idea that they do not have to

    work because that is the beginning of the end of any nation.

    Can you think of any reason for not sharing this?

    Neither could I.

    February 16, 2012 at 11:47 am | Report abuse |
    • El Flaco

      Let me add a few profound comments to your collection of proverbs.

      6. Since 1970, during GOOD economic years, the income of the middle class has gone down while the income of the wealthy has skyrocketed. Since 1970, during BAD economic years, the income of the middle class has gone down while the income of the wealthy has skyrocketed.

      7. The wealthiest 20% of Americans own 93% of America's wealth.

      8. Many American corporations use slave labor and child labor overseas instead of hiring Americans.

      9. There is no 'free market' and opportunity is disappearing rapidly.

      10. Our employers have become our adversaries. When they prosper, we suffer. When they suffer, we suffer a lot more.

      February 16, 2012 at 12:28 pm | Report abuse |
  6. banasy©

    Thank you for your extremely important post, El Flaco.
    This is one of the best I have ever read concerning this.
    To put it bluntly, you rock.

    February 16, 2012 at 12:33 pm | Report abuse |
    • El Flaco

      I agree with you. I am incredibly cool.

      February 16, 2012 at 2:54 pm | Report abuse |
  7. fernace

    A few weeks ago I read on another blog that there are 148 million Americans surviving right now, because of some kind of help from the government! They are probably hardworking folk who have suffered from the last administrations "pillage & plunder" of our national coffers! Please keep in mind that when we work, we ALL pay in to the ent.itlement programs & are therefor ent.itled to their help when needed! The notion that most people want to live on the "dole," & "scheme" ways to get more, longer is false! All the social workers I've talked to tell me there's a small % of people taking advantage, but Most people need help & desperately! Can y'all imagine 148 million persons w/out help!? I'm glad we have these programs, which we pay for & should not be stigmatized for using when necessary! Put yourself in the shoes of the father who has to choose between giving up benefits that feeds his family & a job whose salary will not! He may save his pride having a job, but his family can't survive on "pride"!!

    February 16, 2012 at 2:14 pm | Report abuse |
  8. Lake Erie

    They JUST figured out the "art of the deal" – COMPROMISE! How much time, energy, & taxpayer dollars have they all wasted in their "my way or we'll shut down the government" nonsense over the last year?!?

    February 16, 2012 at 3:53 pm | Report abuse |