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Thursday, December 01, 2011

The Federal Pay Freeze Could Get Colder And Longer

Senate Republicans are proposing an extension of the pay freeze to offset continuation of a payroll tax cut favored by Democrats and the White House. President Obama enacted the current two-year federal pay freeze in January. It was recommended by the Bowles-Simpson debt-reduction commission. The extension of the freeze was proposed by Sen. Dean Heller (R-Nev.). It would add three years to the no-raise policy. And it would reduce the federal workforce by 200,000 through attrition.

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