The U.S. House of Representatives and the U.S. Senate this morning both passed legislation to extend the 2 percent federal payroll tax cut through the end of the year. The House voted 293-132 and the Senate voted 60-36 in favor of the legislation.

 

The bill now goes to President Barack Obama's desk. Obama has been urging Congress to pass the payroll tax holiday legislation and promised to sign it into law.

 

The will extend the current 4.2 percent payroll tax through the end of 2012. Without a deal, the payroll tax would have reverted to 6.2 percent on March 1.

 

U.S. Rep. Gwen Moore, D-Milwaukee, voted in favor of the tax cut extension.

“While I have some reservations about this legislation, I believe the passing of this of this bill is a positive step in the right direction and a great victory for the American people," Moore said. “This bill addresses our immediate economic priorities. It extends the payroll tax cut for 160 million Americans, ensures tens of millions of seniors can continue to see the doctor of their choice under Medicare, and extends unemployment benefits for the millions of hard-working Americans who have lost their jobs through no fault of their own – including about 31,000 Wisconsinites. There is still much work to do to keep our economic recovery moving in a positive direction for all Americans – particularly those most in need. We must continue to move forward in a bipartisan manner to do what is right for the American people."

 

U.S. Rep. F. James Sensenbrenner, R-Menomonee Falls, voted against the tax cut extension.

“This legislation is unfunded and adds upwards of $89 billion to the deficit," Sensenbrenner said. "Our debt has reached crisis level, and we can’t continue to spend money we don’t have and borrow from foreign creditors. Our national credit card is maxed out, and going another $89 billion into the red will only inflict more harm on our economy and discourage job creation. This Administration’s failed policies have done nothing more than discourage private sector job creation and expand government. Job creators are deciding to stay on the sidelines, rather than expand and hire, because of increasing health care costs and regulations handed down from this Administration. There are too many Americans out of work today. We need to restore faith in our economy, and I am committed to enacting pro-growth solutions that rein in our debt, encourage private sector opportunity, and give certainty to our job creators."

 

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