Boehner Buckles On Tax Cut Extension

After immense pressure from not only Democrats, but House and Senate Republicans as well, Speaker Boehner agreed to a new deal for the 2 month payroll tax extension. It was major change of decision ending an intense standoff with Democrats.

Boehner, who appeared unhappy with deal, said  “Kicking a can down the road for a couple of months does cause problems,” but “Sometimes it’s politically difficult to do the right thing”.

Under the new agreement by Boehner and Reid, both parties will immediately begin working to extend the tax cut through the remainder of the year. President Obama has stated he wants the tax cut extended through year constantly calling on Boehner through the week to agree to the deal. He congratulated Congress for the agreement and “for ending the partisan stalemate”.

ABC News reports “If the payroll tax cut was not extended, 160 million American workers would have seen a 2 percentage point raise in their taxes, starting Jan. 1, raising the overall tax burden to 6.2 percent. Three million people who are receiving long-term unemployment benefits would also have seen their benefits drop. The gridlock would also impact Medicare, which would likely lower reimbursements to doctors.”

The new deal must now make it through the House and the Senate. But its reported the bill will be passed by unanimous consent, and would not require all the members to return for a vote.