Payroll Tax Cut: 12 Days Till Tax Hike

Source: Jeanne Sahadi / CNN Money

NEW YORK – House Republicans on Tuesday are expected to reject the the two-month payroll tax extension passed by the Senate. But they have chosen to do so indirectly.

Rather than bring the bill to the floor for a direct vote — and risking the measure actually passing — they will vote to instruct House negotiators to push for a year-long extension in a conference with the Senate.

The problem is that Senate Majority Leader Harry Reid has said there would be no further negotiations until the House passes the temporary two-month extension to insure the tax cut doesn’t lapse after Dec. 31.

So, in 12 days, unless lawmakers figure a bipartisan way out, the payroll tax cut that has saved a typical household $1,000 this year will expire.

To read this article in its entirety visit CNN Money.

Protected with Antivirus