WASHINGTON (AP) — Democratic officials say a new payroll tax cut plan by Senate Democrats drops President Barack Obama’s proposal to award the tax cut to employers in addition to every worker who draws a paycheck.
The new plan would retain Obama’s proposal to boost the payroll tax cut to 3.1 percentage points from the current 2 percentage point cut that expires at the end of the month.
A Democratic aide also says the Democrats’ revamped payroll tax cut plan will contain a modified set of proposals to offset its cost to the Treasury. The Senate is expected to hold a test vote later this week.
Competing Democratic and GOP payroll tax cut plans failed to advance in Senate votes last week.
The officials required anonymity because the proposal hasn’t been officially revealed.
