House to Reject Pay Roll Tax Cut Bill

The debate over extending the pay-roll tax cut is still raging on and the House is expected to reject the bill passed by the Senate, which will extend the tax cut for two months.

Over the weekend, the Senate passed a bipartisan bill to extend the payroll tax cut, but it is a temporary fix. Analysts believe that letting the pay-roll tax cut expire could derail economic recovery. House Speaker John Boehner wants the tax cut extended for a year instead of two months.

The two month extension was approved by the Senate when both parties were unable to reach agreements on the terms of a one year extension.

Mr. Boehner told a news conference this morning, “We oppose the Senate Bill because doing a two month extension instead of a full year extension creates uncertainty for job creators.”

This angered Senate Majority leader, Harry Reid (D) who negotiated a deal with House Majority leader Mitch McConnell (R) at Boehner’s request.

Small businesses can have certain tax breaks available to them. If they are unaware of their options a tax attorney can give them detailed information. Extending the pay-roll tax cut could be very helpful to a business and the average worker.

A tax lawyer will be able to tell the small business owner what they can expect for 2012 if the pay-roll tax cut is not passed. Tax attorneys are also able to help a business owner make some crucial decisions, which can reduce their tax liabilities for the coming year.