Payroll tax cut vote expected

WASHINGTON -- The Senate and House of Representatives will vote as soon as today on a $145 billion agreement to extend a payroll tax cut, expanded unemployment benefits and doctors' Medicare reimbursements through 2012.

Montana Sen. Max Baucus, the chief Democratic negotiator, told reporters he was "quite confident that the package will pass both bodies." House and Senate negotiators reached the compromise late Wednesday, less than two weeks before the three measures were set to expire Feb. 29.

Democrats claimed victory for getting Republicans to drop their demands that the bill be fully financed with spending cuts elsewhere in the budget and for avoiding cuts to Medicare beneficiaries. Republicans said they won by reducing emergency unemployment benefits to a maximum of 73 weeks from a maximum of 99 weeks and preventing Democrats from raising taxes.

The agreement would extend a 2 percentage-point cut in the payroll tax funding Social Security through 2012. Employees would pay 4.2 percent of their wages, down from the typical 6.2 percent, for all wages up to $110,100. The tax break would cost $93.2 billion, according to the Senate Finance Committee.

House Speaker John Boehner (R-Ohio) called the deal a "fair agreement" and said he would support it. "But let's be honest, this is an economic relief package, not a bill that's going to grow the economy and create jobs," Boehner said at a news conference.

The $30 billion unemployment extension would gradually reduce the number of weeks recipients can receive benefits, down from the current 99 weeks, according to separate summaries provided by Democrats and Republicans on the House Ways and Means Committee.

By the end of the year, most states would offer maximum benefits for 63 weeks while people in high-unemployment states would be eligible for 73 weeks of benefits.