Republican leaders in the US House of
Representatives said Monday that they would support an extension
through the end of 2012 of a cut in the payroll tax that is levied
against US workers to pay for pensions.
A statement from House Speaker John Boehner and others said that the conservative party's majority in the lower chamber would no longer insist that the extension be offset by spending cuts.
Republicans in Congress have made deficit-cutting one of their highest priorities since capturing the House in the 2010 midterm elections.
The 2-percentage-point cut in the payroll tax, paid by nearly all US workers, averages $80 a month for 160 million people. It was launched as part of the 2009 stimulus package signed by President Barack Obama during the deepest US recession in nearly 80 years.
"Because the president and Senate Democratic leaders have not allowed their conferees to support a responsible bipartisan agreement, today House Republicans will introduce a backup plan that would simply extend the payroll tax holiday for the remainder of the year while the conference negotiations continue," the Republican leadership statement said.
Due to expire at the end of 2011, Congress passed a two-month extension in December. The cost of an additional 10-month extension starting in March is estimated at 100 billion dollars.
Legislators said that the measure could be passed this week.
Most Popular Stories
- Hezbollah Chief's Assassination Claimed by Sunni Group
- Allstate Seeks to Invest in Minority Firms
- SpaceX's Satellite Launch Is 'Game-Changer'
- U.S. Growth Stayed Steady During Shutdown, Fed Says
- Newtown Massacre Heard on 911 Recordings
- Latin Music Conference Turns 25
- Climate Change Early Warning System Urged
- Guardian Pressured to Stop NSA Stories: Editor
- New Home Sales Shoot up 25 Percent in October
- Reid Confident Congress to Pass Immigration Bill