Obama Signs Extension of Payroll Tax Cut, White House Says
President Barack Obama signed into law legislation extending a temporary payroll tax cut and continuing expanded unemployment benefits through the end of the year.
The measure also will avoid a cut in doctors’ Medicare reimbursements. All three provisions were set to expire at the end of this month. The House and Senate passed the legislation Feb. 17.
The two-percentage-point reduction in the payroll tax for workers will mean an extra $40 per paycheck for a typical worker, according to the White House. Obama has said the extension will help sustain the recovery by bolstering consumer spending, which makes up 70 percent of the U.S. economy.
To contact the reporter on this story: Mike Dorning in Washington at mdorning@bloomberg.net
To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net
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