Congressional Republicans offered to drop their demand tofinance a 10-month payroll tax cut extension with spendingreductions and said the House may vote on the plan this week ifthey don't reach a broader agreement with Democrats.

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

House Republican leaders said in a statement they may put thepayroll-tax cut proposal on the House floor for a vote later thisweek.