House Republicans have passed an extension of the payroll tax cut for another year, but Senate Democrats have vowed to defeat the bill when it comes up for a vote Wednesday.
The House voted 234-193 to approve the bill Tuesday evening, with 10 Democrats joining Republicans in voting for the bill. It would pay for the cost of extending this year’s 2 percentage point cut in Social Security and Medicare withholding taxes mainly through an extension of the current pay freeze for federal employees, reductions in the federal workforce, decreased subsidies for setting up health care insurance exchanges, and a gradual ratcheting down of the maximum number of weeks of unemployment benefits that could be claimed from 99 to 59 (see House Republicans Offer Payroll Tax Cut Bill).
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