WASHINGTON, DC - U.S. Senator Jack Reed has called for Congress to stay in session until it reaches a deal to extend the payroll tax cut for working Americans and maintain jobless benefits for those looking for work in a difficult economy.

“If we have to be there through Christmas to get this done, then so be it.  I will do whatever it takes to make sure Congress keeps working until we can reach an agreement to help working families and get our economy back on track,” said Reed. 

The payroll tax cut will expire at the end of the year, reverting from 4.2 percent back to 6.2 percent on January 1, 2012.  The payroll tax cut is currently worth an estimated $1,065 to the average Rhode Island family.  Senator Reed supports a plan to extend and expand it that would put an additional $1,600 into the take-home pay of the average Rhode Island family in 2012.  In the last year, about 600,000 Rhode Islanders have benefitted from the payroll tax cut. 

“Extending the payroll tax cut will help families keep more of their hard earned money and help businesses grow,” said Reed, who supported the current payroll tax cut for workers that was signed into law by President Obama in 2010.  “If Congressional Republicans refuse to act it will cost Rhode Island families millions.  We simply can’t afford to let that happen.”

Reed also said that Congress must take quick action to maintain federal unemployment insurance for people who are looking for work.  Losing federal jobless benefits for Rhode Island would sap an estimated $188 million out of the state economy, according to the Economic Policy Institute.

“We need to maintain federal support for unemployment insurance to help struggling families and boost the overall economy.  It would be downright cruel if unemployment benefits end over the holiday season,” said Reed.  “The number one thing businesses need to create jobs is an increase in consumer demand.  Preserving unemployment insurance helps spur demand for local businesses by helping people pay their bills while they look for a new job.” 

Reed is the author of the Emergency Unemployment Compensation Extension Act, which would provide relief for both states and struggling families by maintaining federal jobless benefits through 2012.  If Congress fails to act before they adjourn for the year, nearly 10,000 Rhode Islanders and 2 million Americans nationwide could fall through the safety-net and lose benefits.

“This is crucial stuff that makes a real difference in people’s lives.  If Republicans want to debate new plans to pump Canadian oil through Nebraska or their latest ideas for laying off more VA nurses and TSA agents, lets have those debates and take those votes and then move on to real solutions.  Because while the Republican Party may be divided on these issues, the American people are united in wanting Congress to get together and get the job done.”