President Obama relates the tax news at a press conference.
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Obama: Americans will keep payroll tax cut

President Obama has announced that Americans will keep a cut in payroll taxes from January 2012.

The US Congress approved a two-month extension of the cut in payroll taxes, breaking a lengthy deadlock between the president and the Republican-controlled House of Representatives.

House Republicans had wanted the tax reduction to be extended for a year but finally agreed to the two-month compromise put forward by the Senate, where the Democrats have control.

President Obama told reporters that the issue was crucial to the future of the US economy.

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