GOP budget chief: 3 month tax cut might work

AP News
Posted: Dec 22, 2011 10:01 AM
GOP budget chief: 3 month tax cut might work

A key House Republican is suggesting a compromise on the House and Senate standoff over how long, if at all, to extend the payroll tax cut that expires at the end of the year.

Michigan Republican Dave Camp, a House negotiator in the high-stakes dispute with the Senate, suggested on CNBC Thursday that Congress extend the cut for three months to help employers with their quarterly reports.

It was the first indication that House Republicans are open to a compromise with the Senate, which last week passed a two-month extension and left town for a month. If Congress does not act by Dec. 31, the payroll tax jumps 2 percent.

House Republicans are under tremendous pressure to compromise so they are not blamed for a tax hike.