President Obama, House Democrats and majorities of both parties in the Senate want to immediately renew the tax cut and jobless benefits for the next two months, and find a way later to extend them through 2012. House Republicans want to do it for a full year right away.
That doesn’t sound like an unbridgeable gap. Yet the fight has evolved into a year-end partisan grudge match with no clear resolution in sight and with huge political and economic stakes.
Without action, the payroll tax paid by 160 million workers will rise by 2 percentage points to 6.2 percent on Jan. 1. That would mean $1,000 a year less in the pockets of people making $50,000, or about $19 weekly. In addition, 3 million people currently receiving long-term jobless benefits will begin to lose weekly payments that average under $300 — for many, their only support.-WASHINGTON-AP