After a week of refusing to accept the extension of the payroll tax cut that their own party helped negotiate, Republicans in the House of Representatives have finally agreed to pass the bill, according to the New York Times.
Under a deal reached between House and Senate leaders, the House will now approve as early as Friday the two-month extension of a payroll tax holiday and unemployment benefits approved by the Senate last Saturday, and the Senate will appoint members of a House-Senate conference committee to negotiate legislation to extend both benefits through 2012.
The extension means that the percentage taken out of an employee’s paycheck to pay for Social Security will stay at the current rate of 4.2% until March. If the Republicans had not agreed to extend the tax cut, the rate would have increased to 6.2% starting January 1st. By the time the tax cut expires in March, Democrats and Republicans hope to have negotiated a long-term extension of the pay roll tax cut that will stay in effect for all of next year.