Payroll Tax Cut Negotiations
The payroll tax cut negotiations on Capitol Hill are winding down. The bi-chamber
conference dealing with this issue announced, through Senator Max Baucus (D-Mont),
that they have reached an agreement and will be sending the measure to a vote in both
the House and Senate before the end of the week. Unfortunately, in an effort complete
the bill before Congress left for the President’s Day recess, the conferees decided
not to include the business tax extenders – WOTC included – in their agreement. Eric
Cantor (R-VA) said the bill will not include any tax extender provisions, such as
the increase in the mass transit benefit sought by Senate Democrats, or an extension
of the 100 percent bonus depreciation provision for businesses.
While the tax extenders have strong bipartisan support throughout Congress, the urgency
of passing the payroll tax cut took precedent, for now, over the required detailed
examination of the tax extender package.
Speaking on the exclusion of the tax extenders, says Mr. Cantor, “This is not my preferred
way of doing this, but it needs to be done.”
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