Thursday, December 22, 2011

House G.O.P. Leaders Agree to Extension of Payroll Tax Cut

December 22, 2011
House G.O.P. Leaders Agree to Extension of Payroll Tax Cut
By JENNIFER STEINHAUER and JACKIE CALMES

WASHINGTON — Bowing under intense pressure from members of their own party to end the politically damaging impasse over a payroll tax holiday, House Republican leaders agreed Thursday to accept a temporary extension of the tax cut, beating a hasty retreat from a showdown that Republicans increasingly saw as a threat to their election opportunities next year.

Under a deal reached between House and Senate leaders — which Speaker John A. Boehner was presenting to the rank and file in an evening conference call — House members would accept the two-month extension of a payroll tax holiday and unemployment benefits approved by the Senate last Saturday, while the Senate would appoint members of a House-Senate conference committee to negotiate legislation to extend both benefits through 2012.

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