(DES MOINES) The House Tuesday rejected a senate approved measure that would have extended the payroll tax cut of this year for another two months.
The majority opinion was that it should have been for a whole year. Iowa Senator Charles Grassley says the question now becomes whether compromise can be reached by the end of the year.
“There is a chance that the payroll tax holiday of two percentage points, which on an average family that might be close to $1,000 a year more spending money, they may not have that spending money at least starting on January 1st,” said Grassley.
Grassley said the House position is the purest position, but the Senate two month extension was the best that could be approved in a bi-partisan way.
Iowa Radio Network