Payroll Tax Cut Extended

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The House and Senate voted on Friday to extend the payroll tax cut and unemployment benefits, while avoiding a Medicare fee cut for doctors for the rest of the year.  The Middle Class Tax Relief and Job Creation Act will extend the reduced Social Security tax rate through the end of the year. 

President Obama has promised to sign the legislation which means Americans will continue to receive bigger paychecks through the rest of the year.

The extension of the payroll tax cut is estimated to cost $93 billion in revenue over the next two years, however, the act raises revenue through an auction of the spectrum of public airwaves, currently reserved for television, to allow for more wireless Internet systems.  The auctions are projected to raise $15 billion.

The act also repeals earlier-enacted shifts in the timing of corporate estimated tax payments.

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