Paying for Payroll Tax Cut

Debate on Capitol Hill shifts to how to cover costs of extending break.

Top lawmakers from both parties are proposing to offset the cost of extending a U.S. payroll tax cut, establishing markers for negotiations over how to prevent the break from expiring Dec. 31.

Senate Minority Leader Mitch McConnell of Kentucky hasn’t said how Republicans plan to cover the forgone revenue from extending the 2 percentage point reduction in employees’ portion of the Social Security tax. Arizona Senator Jon Kyl, the chamber’s second-ranking Republican, said details would be available by today.

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