The U.S. House of Representatives and Senate Feb. 17 voted to pass H.R. 3630, the Middle Class Tax Relief and Job Creation Act of 2012, which would extend the reduced payroll tax rate and fund emergency unemployment benefits through the remainder of 2012. The measure passed both the House and Senate with bipartisan support.
Congressional leaders averted a lapse at the end of 2011 with a temporary measure to finance the items through February. Disagreements over funding hobbled recent negotiations until House leaders dropped demands that the extensions be paid for in full. Despite partial offsets from federal pension restructuring, health care spending reductions and the sale of broadband spectrum, the extension is estimated to add more than $100 billion to the 2012 deficit.