Technology Slice Blog

Payroll Tax Cut - As the White House and Congressional Republicans near a deal on sweeping tax legislation, including an extension of the Bush-era tax rates for all income levels, President Obama has agreed to give up the “Making Work Pay” tax credit that was the central tax break for middle and low-income Americans in last year’s economic stimulus bill. Mr. Obama had been pressing for a one-year extension of the Making Work Pay credit, which provided a tax break of up to $400 for individuals and $800 for couples. But Republicans opposed the idea. An administration official said that in the emerging deal, the “Making Work Pay” credit would be replaced with a one-year reduction in payroll taxes for workers. In addition to a two-year extension of the income tax rates enacted under President George W. Bush, the deal includes a one-year extension of jobless aid for the long-term unemployed. Officials said negotiators were also close to an agreement to restore the federal estate tax,...