Congress packs up, with no resolution to payroll tax cut
The Senate is gone, the House is packing up, and for now that means working Americans will see their taxes rise in January.
After weeks of bitter partisan wrangling, the Capitol emptied for the holidays with no sign of negotiation toward a compromise that would save an expiring tax break. As of Jan. 1, the payroll tax cut that has been in place all year is scheduled to return to 6.2% from its current 4.2%, meaning that biweekly paychecks on average will be $40 smaller.
Long-term unemployment benefits for some 3 million people also are poised to expire, and doctors face an estimated 20% cut in Medicare payments.