Congress Reaches Deal On Tax Extension
POSTED: Wednesday, February 15, 2012 - 9:23pm
UPDATED: Monday, December 31, 2012 - 10:06am
EL PASO- A new deal on Capitol Hill could put more money in your pocket.
Republicans and democrats have reached a deal to extend the payroll tax cut.
If the new deal is passed, the payroll tax cut will continue through the end of this year.
It does come at a cost, adding an expected 100 billion dollars to the nation's deficit.
El Paso Accountant David Marcus says that the less the government takes out of El Pasoans' paychecks, the faster the area will rebound from the recession.
"In affect it just put more cash into people's pockets last year. The idea is of course, if you have more cash in your pocket, you are going to spend more. The economy is going to improve faster, and everybody will be happier,” said Marcus.
The original payroll tax cut lowered the amount of social security tax withheld from Americans' paychecks by two percent.
"This tax cut means that the typical American family will see an extra $40 in every paycheck this year. It will help speed up this recovery,” said President Obama while visiting Milwaukee, WI Wednesday afternoon.
House Speaker John Boehner says that republicans' goal is protect the working class.
"We were not going to allow the democrats to continue to play political games and raise taxes on working Americans,” said Speaker Boehner.
El Paso Congressman Silvestre Reyes' office tells Newschannel 9, “ the Congressman remains optimistic that republicans and democrats can come together on this very important issue. The congressman remains committed to ensuring that any payroll tax cut deal does not compromise the social security trust funds or harm hospitals who depend on federal support to care for under-served El Pasoans."
No matter your political view, Marcus says that he's never met an El Pasoan who didn't like a tax cut.
"In a couple of decades of doing tax returns, I don't think I've met one person who wants to give money back to the government,” said Marcus.
President Obama says he will sign the bill as soon as it passes. No date's set for a house vote on the bill.