Although considerable airtime and print coverage will be devoted to President Obama's proposed budget, the bigger issue in Congress is extension of the payroll tax holiday and emergency unemployment benefits, which will run out at the end of this month (UPDATE: Late Monday, the GOP House reversed themselves and agreed to extend the current payroll-tax reduction for the rest of the year without spending cuts – but are still negotiating over how to pay for unemployment benefits)
So the clock ticks again for negotiators, who have a little over two weeks to get a deal done. Democrats want to cover the cost of the payroll tax for the rest of this year by imposing a tax on those making more than $1 million a year, as well as eliminating some corporate tax subsidies. Republicans want to pay for it by freezing pay for federal workers, cutting some pension benefits and raising Medicare premiums paid by wealthy seniors.
Regarding unemployment benefits, Republicans want to give states the option to require drug testing for recipients (a move that would be superfluous in Rick Scott's Florida), and require those collecting benefits without a high school diploma to enroll in a GED program.
This article appears in Feb 9-15, 2012.
