Potential deal on payroll tax cut

WASHINGTON (Reuters) Bowing to pressure, canada goose coats the top Republican in Congress on Thursday moved Canada Goose Parka to end an impasse that threatened to impose a Canada Goose online tax hike for 160 million Americans and cut off benefits for millions of unemployed people.

House of Representatives Speak John Boehner agreed to a two month deal to renew the popular payroll canada goose uk shop tax cut and extend jobless benefits, after the Republican led House canada goose rejected a bipartisan Senate plan earlier this week.

Below is the outline of the proposal, which will be altered slightly from the original Senate plan to add provisions to help payroll processing companies.

PAYROLL TAX The canada goose factory sale proposal extends for two canada goose coats on sale months a 4.2 percent payroll tax rate now paid by workers, short of the ordinary 6.2 percent rate. cheap canada goose uk President Barack Obama has been calling for an extension of the tax cut for months, in an effort to prevent the economy from stalling.

The payroll tax funds the canada goose store federal Social Security retirement program. Employers and canada goose black friday sale employees typically pay 6.2 percent each on the first $110,000 of wages.

JOBLESS BENEFITS Under the plan, unemployment benefits will be extended for a maximum of 99 weeks, preventing around 2 million jobless Americans canada goose uk black friday from being cut off in the first two months of next year.

Some 13 million Americans are unemployed, of whom nearly 6 million have been without Canada Goose Coats On Sale a job for more than one year.

Republicans had sought to limit the extended benefits for 59 weeks cheap Canada Goose and to impose new requirements to qualify, Canada Goose Online such as drug testing.

MEDICARE DOCTORS PAY The bill prevents a 27 percent tax cut in buy canada goose jacket cheap payments for doctors who treat patients on Medicare, the federal health plan for the elderly and disabled. Democrats and Republicans largely agreed on this issue.

KEYSTONE PIPELINE The bill requires Obama to make a decision on approving a TransCanada Corp Canada canada goose clearance sale to Texas Canada Goose sale Keystone XL oil pipeline Canada Goose Jackets within 60 days, canada goose uk outlet or declare that the pipeline is not in the national interest.

Obama had previously put off a decision on the controversial like it canada goose outlet https://www.expeditionparkaoutlets.ca pipeline until the end of next year, citing the need for further environmental studies, so this part of the Canada Goose Outlet deal is a concession by Obama and many Democrats.

MORTGAGE FEE INCREASE The two month extension will be paid for by increasing the fees that mortgage financiers Fannie Mae, Freddie Mac and the Federal Housing Administration charge lenders to guarantee new loans.

The ultimate cost of uk canada goose outlet the tax break will be shouldered by new homeowners, who pay lenders or banks for loans. According to calculations by Democrats, the monthly cost uk canada goose of canadian goose jacket a $220,000 mortgage would increase by less than $15.

COST OF TWO MONTH EXTENSION

The short term measure will cost about $33 billion. Increasing canada goose clearance the guarantee fees over 10 years is projected to raise $36 billion, according to the non partisan Congressional Budget Office.

PAYROLL PROCESSORS The bill buy canada goose jacket makes a technical change to the Senate bill, removing the pay cap on wages subject to payroll tax relief. Payroll processing companies had complained of the administrative burden of implementing the two month fix.