Payroll Tax Deal Means 2012 Fight

Democrats want to include higher taxes on wealthy in a longer-term deal.

Congressional Democrats are making clear they want to focus talks for a one-year extension of a payroll tax cut on an issue that proved difficult before the latest partisan brawl: whether higher taxes for the wealthy should help cover the plan’s cost.

Congress yesterday passed a two-month payroll tax-cut extension eight days before its scheduled expiration after House Republicans dropped their objections under growing political pressure. President Barack Obama signed the measure, and negotiators in both parties are making plans to start work on a longer-term deal.

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