Payroll tax cut extension deal reached - KWWL - Eastern Iowa Breaking News, Weather, Closings

Payroll tax cut extension deal reached


The $143 billion payroll tax cut won by President Barack Obama may be the last significant measure he receives from a deeply divided Congress as Election Day approaches.

Obama's coveted renewal of the payroll tax cut for 160 million workers and jobless benefits for millions more caps a five-month campaign-style drive against reluctant GOP lawmakers.

Under the bill, workers will continue to receive a two percent increase in their paychecks, and people out of work for more than six months will keep jobless benefits averaging about $300 a week.

Obama says these steps will help support a fragile recovery from the worst economic downturn since the Great Depression.

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