Reid to Introduce Compromise Bill on Payroll Tax Holiday

Senate Majority Leader Harry Reid plans to introduce a compromise bill to continue with the payroll tax holiday on Monday according to Senator Kent Conrad (D-ND), the chairman of the Senate Budget Committee.

Conrad further stated that the payroll tax holiday will be paid for. The extension will take more than $120 billion away from Social Security.

This payroll tax cut is one of President Obama's key issues and would increase the cut from 2% off of the 6.2 percent that Americans pay into Social Security to 3.1%. This would effectively increase the amount that Americans save from an average of $1000 to $1500 for 2012.