Deal preserves payroll tax cut for Nevadans

WASHINGTON -- A hard-fought agreement unveiled in Congress on Thursday has cleared the way for more than a million working Nevadans to continue receiving a tax cut in their paychecks through the remainder of the year.

For people still struggling in the worst-in-the-nation job market, the news was more mixed. The deal renews federal funding for payments to people out of work for more than six months but scales back the maximum number of weeks that someone can collect from 99 weeks to 73 weeks by the end of the year.

Legislation carrying out the $143 billion agreement was expected to pass the House and Senate before lawmakers go home this weekend for a weeklong recess. It would bring to an end, at least through the November elections, disputes over Social Security payroll tax cuts and benefits the Obama administration and congressional Democrats consider key to sustaining economic recovery.

"This legislation will let middle-class families keep more of their money, and it will allow the economy to continue to grow," said Sen. Harry Reid of Nevada, the Senate majority leader. "It also guarantees hardworking Americans looking for a job in this tough economy will not have the safety net ripped out from under them."

The package was gaining grudging acceptance from some Republicans, while others continued to protest that it will do little to spark the economy while adding $89 billion to the deficit over the next decade.

"Let's be honest, this is an economic relief package, not a bill that's going to grow the economy and create jobs," said House Speaker John Boehner, R-Ohio. But Republicans, who took a public relations bath in a fight over similar legislation late last year, decided not to draw another line in the sand.

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