Deal to Preserve Payroll Tax Cut Reached

Republicans, Democrats made an overnight deal that will give Americans relief.
1:31 | 02/15/12

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Transcript for Deal to Preserve Payroll Tax Cut Reached
Bet that of that breaking news overnight from Washington Republicans and Democrats have reached a deal. To -- that payroll tax cut that means more take home pay for a 160 million American workers. ABC's Jake Tapper is -- the negotiations in the west and -- the deal means more relief for millions of unemployed Americans to. That's right it's about a 1000. Dollar a year payroll cuts -- tax cut extension affecting 160. Million Americans and as you mentioned George it also affects extending unemployment insurance that. -- be reduced from 99 weeks to somewhere between sixty and 75 weeks depending. On what state you lived in. In addition the deal also fixes what's called the Medicare doc fix -- -- making sure that doctors who accept Medicare do not have. Their fees reduced George. And Jay -- embrace mission going into this but it looks like both sides realize this is a fight they simply could not afford to have. In an election year. That's right and it seems like the key moment I came earlier this week when house Republicans gave in. On the issue of whether or not the 100 billion dollars for this payroll tax cut extension. Would need to be paid for -- that's -- rankled a lot of the Tea Party members but that's when they gave in Republicans in the house decided they just do not want this issue -- there. In an election year George and they're still working on this but this is pretty firm though about this week. Their -- they work through the night it is right now still very tentative but they're hoping the be able to introduce the bill today and have a vote by Friday OK Jake thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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