Senate Majority Leader Harry Reid, D-Nevada, said a payroll tax cut bill that easily pass in the House is essentially dead on arrive in the Senate.
While both parties agree that extensions of the payroll tax cut should be renewed before the end of the year, they disagree strongly on how the bill, which also includes extending long term unemployment benefits and cuts to doctors’ Medicare reimbursements are also part of the bill, will be paid for.
Republicans refuse to consider any bill that raises taxes even on the wealthiest Americans and have tied the start of building the controversial Keystone XL pipeline to their bill. Democrats are sticking by a tax increase on the wealthy and support the Obama Administration’s delayed decision on the pipeline.
Without extending the payroll tax cuts, some 160 million American workers would see their payroll tax increase in January from 4.2 to 6.2 percent. For a family making $50,000 this increase essentially takes $1,000 out of their pockets next year.
Find out what else Congress has to decide on before visions of sugarplums may dance in their heads at Huffington Post.
