THE Payroll Tax Cut set to expire by the end of February, will be extended
until December. The announcement was made today. The move is likely to renew
expiring jobless benefits for millions and also prevent a pay cut for doctors of
elderly Medicare patients. Economists have appreciated the move of the Obama
government as it is expected to rejuvenate the US economy.Though the deal has
been announced ,it has been reported there are details that have yet to be
discussed before the agreement is given the green signal to be formulated into a
final bill. The payroll tax was first reduced from 6.2 percent to 4.2 percent in
the beginning of 2011 at the request of US President as part of his bid to
stimulate the economy. The new deal would remain at the 4.2 percent rate until
the end of this year, during which it is projected to put an additional $1,000
in the pockets of the average American people.
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