WASHINGTON (AP) – Democrats are abandoning their demand for a surtax on millionaires to help finance payroll tax cuts in a sign that lawmakers are trying to broker a compromise on Congress’ highest-profile year-end dispute.

Even so, there is no clear path to quick bipartisan agreement on the legislation, which would prevent an automatic Social Security tax increase on 160 million workers and the expiration of jobless benefits for people out of work the longest. Both would occur Jan. 1 without congressional action.

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From BusinessInsider:

Sen. Chuck Schumer (D-NY) said Senate Democrats will put forward a plan to extend the payroll tax cut into 2012 this week paid for by a surtax on those with incomes greater than $1 million.

The tax cut provides the average American family with an extra $1000 in their pocket each year — and President Barack Obama has said failing to extend the tax cut and unemployment benefits would cost the economy 1 million jobs and 0.5% off GDP.

Schumer described the revenue increase on Meet the Press as a “small surtax on incomes over $1 million,” a measure certain to draw opposition from deficit-hawk Republicans opposed to any tax increases.

Schumer added that Democrats would keep introducing the payroll tax cut if it fails this week — but indicated his party is willing to negotiate other “pay-fors” with Republicans if necessary.

Americans for Tax Reform president Grover Norquist said on the same program that he is not opposed to extending the tax cut, but he indicated he would be opposed to a new tax on millionaires to pay for it.

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From The Hill:

Democratic leaders in the Senate are scrambling to avoid defections on President Obama’s jobs package, which appears headed for defeat on Tuesday.

A lack of Democratic unity on the president’s bill would be embarrassing for the White House, which has been scolding House Republicans for refusing to vote on the measure.

Obama has been touring the country, aiming to put pressure on the GOP to act. But Senate Democrats have indicated they are feeling some heat. Last week, Democratic leaders revised Obama’s bill, scrapping his proposed offsets. Instead of raising taxes on families making more than $250,000 annually, Senate Democrats lifted that figure to $1 million.

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I believe that President Obama’s address to Congress, and our Nation, did not go far enough to put the numerous concerns Americans have to rest with the healthcare reform proposals before the House and the Senate.  There are still too many unanswered questions surrounding these discussions and too much at stake to simply pass any bill without intensive scrutiny and review.  After reading the over 1,000 page House Democrat proposal and fielding over 8,000 constituent correspondences into my office, it is clear that there is much work to be done.  

 During the August district work period, I attended numerous meetings across my congressional district and met with hundreds of constituents who made it clear that they are unhappy with the way Congress is conducting the current health care debate.  Democrat Congressional leadership continues to rush health care legislation through both chambers, without any real explanation.  Constituents in Ohio’s Fifth District, in addition to millions of other Americans, have asked Congress to slow this process down and thoroughly examine probably one of the most important pieces of legislation Congress has debated since the New Deal.  No one will argue that our nation does not need health care reform, but it is clear that Congress must start over with real bipartisan negotiations where Republicans can be included and have input into the final legislation.

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