GOP ready to cave on payroll tax
Cantor does not have the big stupid grin on his face now.
Speaker John Boehner announced Thursday night that he had reached a deal to extend the payroll tax break for two months, averting a January tax increase for 160 million Americans. The deal will be cleared on Friday on a voice vote in Congress. While Republicans made a major concession in agreeing to the two-month deal, they won agreement to tweak some technical aspects of the payroll tax for businesses. As part of the deal, Senate Majority Leader Harry Reid will appoint conferees to negotiate a long-term agreement.
Here's Boehner's statement: "Senator Reid and I have reached an agreement that will ensure taxes do not increase for working families on January 1 while ensuring that a complex new reporting burden is not unintentionally imposed on small business job creators. Under the terms of our agreement, a new bill will be approved by the House that reflects the bipartisan agreement in the Senate along with new language that allows job creators to process and withhold payroll taxation under the same accounting structure that is currently in place. The Senate will join the House in immediately appointing conferees, with instructions to reach agreement in the weeks ahead on a full-year payroll tax extension. We will ask the House and Senate to approve this agreement by unanimous consent before Christmas."
