As of February 16, 2012 a tentative agreement has been reached by lawmakers negotiating over the payroll tax cut extension. It will reach President Obama by next week.
The following is outlined according to the tentative agreement:
- Extend the 2 percentage cut in Social Security and Medicare until year–end.
- Extend the expiring jobless benefits for the long-term unemployed
- Adjust the Medicare payment system to avoid a 27% drop in physicians' fees
- Reduce the maximum unemployment extension from 99 to 73 weeks
- Require federal employees to contribute another 1.5 percent of their salaries toward pensions
The payroll tax cut and renewing jobless benefits were announced this September. It benefits 160 million Americans and delivers a tax cut annually of about $1,000 for the typical worker making $50,000 a year. Those making a salary of $100,000 would get a $2,000 tax cut.
We will release an update pending a final decision.