Politics
Obama gets pay roll tax cut extended by Congress
Their positions drew fire from many fellow Republicans, who argued that the party had long been for lower taxes and that blocking a tax-cut extension could rile voters in advance of the November elections.
House Speaker John Boehner and fellow Republican leaders cleared the way for a deal on Monday when they dropped their demand that there be spending reductions to pay for the tax-cut extension.
The payroll tax was first reduced from 6.2 percent to 4.2 percent in the beginning of 2011 at the request of Obama as part of his bid to stimulate the economy.
The new deal would continue the 4.2 percent rate until the end of this year, during which it is projected to put an additional US$1,000 in the pockets of the average American working family.
Analysts said opinion polls showing public disgust with a gridlocked Congress may have helped drive lawmakers, many of whom are up for re-election this year, toward a deal.
