Lawmakers approve payroll tax bill including pension provisions

Rep. John Boehner, R-Ohio, and other Republicans conceded Friday that they would not insist the extension part of the deal be paid for. Rep. John Boehner, R-Ohio, and other Republicans conceded Friday that they would not insist the extension part of the deal be paid for. J. Scott Applewhite/AP

The House on Friday overwhelmingly approved a bipartisan deal to extend a payroll-tax cut, federal jobless benefits and prevention of a reimbursement cut for Medicare doctors through the end of the year.

The House approved the bill -- actually a conference committee report -- by a vote of 293-132 and the Senate passed it 60-36. It now heads to President Obama's desk. The president has said he will sign the $150 billion package .

The deal was actually agreed to mid-week, and finalized and endorsed by the conference committee on Thursday, ending months of battle as lawmakers faced expiration of a temporary extension of the three items at the end of the month.

The critical breakthrough was the concession by Speaker John Boehner, R-Ohio, and other House GOP leaders that they would not insist the $94 billion payroll extension part of the deal be paid for.

The payroll-tax cut has been a key part of Obama’s campaign push for jobs legislation. Under the agreement, the tax break would be extended for the rest of 2012, leaving it at 4.2 percent rather than letting it rise to 6.2 percent.

The package also puts off a 27.4 percent cut in payments to Medicare doctors, costing $17.9 billion over 10 years. It is funded in part by a $5 billion cut to a preventive medicine health fund in the health care law, and a $6.9 billion cut to Medicare hospitals for non-payment on premiums and co-pays.

And the legislation includes a three-tiered reduction in overall federal unemployment benefits that relies heavily on the unemployment rates in individual states. The agreement would provide a maximum of between 89 and 99 weeks of coverage from March through May of this year, in June the maximum would go to 79 weeks, and by September, it would fall to 73.

Increases in the amount new federal workers contribute to their pensions also will help pay for the measure.

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