Democrats Block Action On Year-End Spending Bill ; Pledge to Hold Out for Move On Payroll Tax

Summary


Congress flirted Wednesday with yet another partial government shutdown - the third this year - as Democrats said they won't allow a year-end funding bill to go through until lawmakers also pass an extension of this year's payroll tax cut.

Late in the day, Democrats were reportedly preparing a new payroll tax-cut offer after forgoing their demand that any tax cuts be accompanied with tax increases on the wealthiest Americans. That had been their chief negotiation position since September, when President Obama insisted that tax increases be part of his jobs- stimulus package.

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Democrats Block Action On Year-End Spending Bill ; Pledge to Hold Out for Move On Payroll Tax

The new offer could be the breakthrough needed to end a stalemate, which now threatens continued funding for most of the government, payments to doctors to treat Medicare patients, more unemployment benefits for the long-term jobless, and the tax cut, which Mr. Obama said i...

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