Payroll Tax Cut Extension Plan Stalls

By Maureen Mespell

December 20, 2011 Updated Dec 20, 2011 at 6:56 PM EDT

WASHINGTON (Indiana's NewsCenter) -- You'll have less money to invest, at least for now, after a plan to extend a payroll tax cut stalls in Congress.

The House of Representatives voted to go to conference on the measure, with House Republicans unhappy with the Senate version.

The Senate voted to extend the cut for two months.

House Speaker John Boehner wants a year long deal, and called on his Senate colleagues to return to Washington DC and work out the differences.

"We've got 10 days to do our work,” says Boehner, “we can resolve the differences between the House and Senate bill. Everybody wants this extended for a year. But it just happens to be inconvenient for some to try to resolve it as this point. Why? Because we're getting close to the holidays."

Reacting to today's House vote the President says the dispute between sides isn't over the payroll tax cut, but other issues not related to the bill.

"In fact the House republicans say they don't dispute the need for a payroll tax cut,” says President Obama, “What they are really trying to do, what they are holding out for is to ring concessions from democrats on issues that have nothing to do with the payroll tax cut."

Payroll taxes will increase for a hundred and 60 million workers on January first if Congress doesn't extend the cut.

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