A standoff in Washington could directly affect your paycheck.
Senators in Washington agreed to a compromise extending the Social Security payroll tax cut for two months. It included a provision that would require President Obama to make a decision on TransCanada’s permit application for the Keystone XL pipeline within 60 days.
The House has rejected the deal. House leadership claims it wants a one-year deal. Extending the payroll tax cut would affect 160 million Americans, one million in Nebraska. It is estimated it would save the average worker about $1,000 in 2012.
House leaders have asked Senate leaders to call its chamber back to Washington to reconcile the differences. Senate leaders, so far, have rejected the suggestion.
Sen. Mike Johanns, a Republican, points out the Senate approved the deal on an 89-to-10 vote.
“I just think because of that I’m not seeing any of my colleagues saying, ‘Let’s go back into session’. I don’t see that at all,” Johanns tells Nebraska Radio Network. “So, I’m hoping that leadership can work this out. I certainly encourage them to work it out.”
Johanns had opposed the measure. He argued that extending the payroll tax cut threatened the solvency of the Social Security Trust Fund. The senator changed his mind when Democrats offered to sweeten the pot to attract Republicans by adding Keystone.
The Senate deal also would fund unemployment benefits for the long-term jobless. Another provision maintains Medicare reimbursement rates for doctors, canceling a scheduled cut in rates.