Payroll Tax Deal: $20 a Week in Paychecks
Tentative deal emerges in House-Senate talks
By Newser Editors and Wire Services
Posted Feb 14, 2012 6:33 PM CST
John Boehner addresses the annual Conservative Political Action Conference on Feb. 9 in Washington.   (Getty Images)

(Newser) – House-Senate talks on renewing a payroll tax cut that delivers about $20 a week to the average worker yielded a tentative agreement today, with lawmakers hopeful of unveiling the pact tomorrow and sending the measure to President Obama as early as this week. Under the outlines of the emerging agreement, a 2-percentage-point cut in the Social Security payroll tax would be extended through the end of the year, with the nearly $100 billion cost added to the deficit.

Jobless benefits for the long-term unemployed would be renewed as well, with the $30 billion cost paid for in part through auctioning broadcast spectrum to wireless companies and requiring federal workers to contribute more toward their pensions. The payroll tax cut and renewing jobless benefits were key planks in Obama's jobs program, which was announced in September. The payroll tax cut benefits 160 million Americans and delivers a tax cut of about $20 a week for a typical worker making $50,000 a year. People making a $100,000 salary would get a $2,000 tax cut.

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Showing 3 of 39 comments
midget_farmers
Feb 15, 2012 11:56 AM CST
do you think that laugh a little inside when they see how little the average worker makes?
trailmix
Feb 15, 2012 9:53 AM CST
In the News: payroll tax cut, this should put $80 a month in the pockets of 160 million. In the News: Gas prices could reach $5.00 a gallon this summer. ........... Now how the fuck is it that every time the government gives us a tax break, the oil companies step right up and take that tax break right out our pockets?
Person12345
Feb 15, 2012 8:55 AM CST
$20.00 ??? Are they kidding?? 2% of $1,000 per week is $20.00 Do you know anyone who makes $1,000 a week salary?? I don't. $300/wk is more like an average wage for a lot of people these days, that means a payroll tax savings of $6.00. $52,000 salary in today's economy is way above average, but then the politicians in Washington have no idea that the average American earns way less than that. Can you say "out of touch".