–Senate Passes Bill On 60 to 36 Vote
–House Approved Measure Earlier on 293 to 132 Vote
–President Obama To Sign Payroll Package Into Law

By John Shaw

WASHINGTON (MNI) – The Senate, voting less than an hour after the
House, voted Friday to approve a payroll tax cut extension package.

The Senate passed the bill on a 60 to 36 vote, sending it to
President Obama for his signature.

The House approved the package on a 293 to 132 vote.

The Senate passed the bill with less than a minute of debate.
Senate leaders have said the payroll tax matter has been under
discussion for many months.

Before the vote, Senate Finance Committee Chairman Max Baucus said
the bill will provide a tax cut for 160 million Americans, providing
about $1,000 tax cut for the year.

The package would extend last year’s payroll tax cut until the end
of this year and the nearly $100 billion cost of the payroll tax cut
extension would not be offset.

The other two main items in the package would be offset: a renewal
of unemployment insurance benefits and an adjustment in the Medicare
reimbursement of doctors so that a 27% payment cut is prevented.

These two items would cost about $50 billion and will be offset
through an assortment of spending reductions.

Congress is scheduled to leave Friday for a week-long recess and
congressional leaders are determined to pass the package before
departing Washington.

The payroll tax cut extension package came together after House
Republican leaders said Monday they would be willing to extend last
year’s payroll tax cut for the rest of this year without requiring
budget offsets.

The House-Senate conference committee worked for several weeks to
draft a payroll tax cut package. Those talks focused on a $150 billion
package to extend the payroll tax cut, extend unemployment insurance
benefits and prevent a deep cut in Medicare reimbursements for doctors.

Congress passed a two month extensions of these programs which
expire at the end of February. Both Obama and congressional leaders
said they wanted to pass a one year extension of these programs, but the
House-Senate talks stalled out over the offset package and other policy
matters such as an overhaul of the UI program.

** Market News International Washington Bureau: (202) 371-2121 **

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