Daily Tax Update - December 12, 2011: Members Say Payroll Tax Cut Will Be Extended

MEMBERS SAY PAYROLL TAX CUT WILL BE EXTENDED:  Members of both parties said yesterday that the payroll tax cut will be extended before Congress adjourns for the year.  Senate Minority Leader Mitch McConnell (R-KY) said, "I believe we should extend the payroll tax holiday another year."  Sen. Lindsey Graham (R-SC) also was optimistic it would pass, saying "It won’t get expanded, it’ll get extended."  Graham added, "At the end of the day, the payroll tax will get extended as it is now.  And we'll find a way to pay for it in a bipartisan fashion.  This idea of taxing one group to pay for a tax cut for another is not going to sell.  The pipeline's probably not going to sell."

  • Democrats also predicted the bill would pass.  Sen. Richard Durbin (D-IL) said that extending the tax cut "is the highest priority of the president and of the Democrats in Congress."  Durbin added that if the tax cut is allowed to expire, "it's a new tax, an added tax for average working people."

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