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WASHINGTON, D.C./OTTUMWA, IOWA -- On Friday, congress passed an extension to the payroll tax cut.

The extension continues the 2% reduction in payroll taxes on all working Americans.

Payroll taxes are paid into the Social Security Trust Fund.

Iowa Congressman Dave Loebsack was one of the representatives that introduced the legislation last year.

KTVO spoke with Congressman Loebsack from Washington Friday morning. He was very pleased with the bi-partisanship.

"I am very pleased that it (the bill) passed and that it passed overwhelmingly on a bi-partisan basis. As you know this will extend the payroll tax holiday for the final 10 months of the calendar year; and for 12 months we are talking a $1000 tax cut for a family that is earning $50,000 a year," said Loebsack.

The agreement lets both parties avoid the nasty partisan fight over the issue that occurred in December.

President Obama has indicated he would sign the bill as soon as possible.