In the wake of the failure of the congressional “super committee” to agree on a 10-year plan to reduce federal deficits, lawmakers from both parties signaled limited willingness to compromise on more immediate economic issues headed their way before the year ends.
The Obama administration has asked Congress to extend payroll tax cuts set to expire at the end of the year, and also to renew unemployment benefits. The tax-cut extension could cost the Treasury an estimated $112 billion, but if it lapses American workers will see an immediate tax increase on Jan. 1 that would cost a typical family $1,000 per year.
Democrats plan to propose paying for the extension with a surtax on millionaires, which Republicans oppose.
“By taxing people who provide jobs, you put off the day we have economic recovery and job creation in this country,” said Sen. John Kyl of Arizona, one of six Republican members on the super committee that called it quits last week. “It would hit those people, the small businesses who we all acknowledge are the ones who create the jobs.”