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Republican House of Representatives Speaker, John Boehner, reverses course, agreeing to a short-term deal to extend a payroll tax break for 160 million Americans.
“Senator Reid and I have reached an agreement on payroll tax relief, on behalf of the American people. Key parts of this agreement are that on January 1, no American will see an increase in their taxes.”
House Republicans had rejected the two-month deal already passed by the Senate, insisting that a full-year deal be agreed to before the tax cut expires on December 31. That would leave the average American worker facing a $1,000-a-year tax increase.
Earlier on Thursday, as pressure mounted on Republicans from within and outside the party, President Barack Obama appeared surrounded by Americans who said the tax cut would impact their families.
“Enough is enough. The people standing with me today can’t afford any more games. They can’t afford to lose $1,000 because of some ridiculous Washington standoff.”
Now Boehner says he’ll set a vote in the House before Christmas.
Both parties will return to the table in the New Year, appointing negotiators to hammer out a full-year extension.
The deal is an early Christmas present for Obama and a victory for Democrats in a year of Republican dominance in Congress.