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via BBC News

The US Congress has voted in favor of extending a payroll tax cut until the end of 2012, ending months of debate.

The bill now moves on to President Barack Obama, who has promised to sign it into law.

The deal would extend a payroll tax cut the White House says saves middle-class Americans some $1,000 a year.

Republicans had demanded that the tax cut be offset by budget cuts elsewhere, but later agreed to add the estimated $100bn cost to the US budget deficit.

Correspondents said the deal was a compromise by fiscally conservative House Republicans, who had fought last December for a deal that did not increase the deficit.

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Article courtesy bbc.co.uk