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Congress extends tax cut, unemployment benefits in U.S.


 

Congress members in the U.S. announced this morning they had reached a bi-partisan deal to extend a payroll tax cut that affects 160 million middle class Americans. The cut, which reduced the payroll tax from 6.2 percent to 4.2 percent, had been intended as a way to stimulate the sagging economy and was due to expire at the end of February.

The deal is expected to be passed by this Friday. It also includes an extension of unemployment benefits, though an earlier proposal to reduce the pay of doctors who treat elderly patients covered by Medicare did not make it in the final version.

While this is widely seen as a victory for President Barack Obama and Democrats in Congress, the agreement also benefits Republicans. Their decision to support the bill stands in stark contrast to their “Party of No” approach, which had been the norm so far. Whether this conciliatory approach marks a shift in strategy ahead of the November election remains to be seen, but it certainly limits the Democrats’ ability to decry the Republicans as the party of evil, at least for this one time.


 
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Congress extends tax cut, unemployment benefits in U.S.

  1. Cutting payroll taxes and increasing EI?  My god, it’s like they’ve got somebody with a brain to devise a plan for the economy.  Soon they might even realize that businesses don’t hire when they have excess profits, but rather too much demand.

  2. “Their decision to support the bill stands in stark contrast to their “Party of No” approach, which had been the norm so far. “

    I’m not sure who the editor of Macleans is at his point, but is there any effort at all being made to rein in ham-handed overt bias in the “NEED TO KNOW” section?  Perhaps we could just rename it the “NEED TO SHILL” section.

  3. Payroll taxes are basically  social security contributions. 
    “Cutting payroll taxes” is therefore just a euphemism for pillaging Social Security. Not surprising that this dumbest, most reckless of economic policies receives bipartisan support. Such is the state of US politics. 

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