GOP Offers to Extend Payroll Cut

Congressional Republicans drop demand that payroll tax cut be offset with spending reductions.

Congressional Republicans offered to drop their demand to finance a 10-month payroll tax cut extension with spending reductions and said the House may vote on the plan this week if they don’t reach a broader agreement with Democrats.

The Republican proposal, which would add $94 billion to the deficit, reflects the desire to avoid being blamed for an impasse, as when a breakdown in talks almost caused the tax break to expire at the end of December, said a Republican leadership aide who spoke on condition of anonymity. Democrats propose an income surtax on people earning more than $1 million a year. The Republican proposal is an attempt to defuse the tax issue, the Republican aide said.

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