Tentative Deal Reached on Payroll Tax Cuts

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With time running out before federal payroll tax cuts expire, negotiators say they've agreed on a tentative deal that could be ready for President Obama to sign by the end of the week.

Late Tuesday night, a bipartisan committee reached an agreement.

The proposal extends the payroll tax credit for the rest of the year. It also extends unemployment benefits and prevents a large cut in reimbursements to doctors who accept payments from Medicare.

The plan is not final and still needs the approval of House Speaker John Boehner, R-Ohio, as well as the rest of the House.

Some worry that the cost of the proposal could make it a tough sell to many conservative Republicans, but others they say that it's time to move on.

"I think the mood is to get it off the table. We've got to move on to another issue and I think that's what the mood is," Rep. Dennis Ross, R-Fla., said.

"I wish we could have gotten more out of it. The most important thing is that we get this done," Rep. Renee Ellmers, R-N.C., said.

The recent progress comes a day after House Republicans agreed to pass payroll cuts without requiring spending cuts to pay for them.

The new plan would add about $100 billion to the national deficit; so far only a third of it would be paid for by cuts in other areas.

Both Democrats and Republicans caution that the plan could still change. But they say that if negotiations stay on track, a vote could come this week.

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Charlene  Aaron

Charlene Aaron

CBN News Reporter

Charlene Aaron serves as a general assignment reporter and helps anchor for the CBN News Channel.  Follow her on Twitter @CharNews and "like" her at Facebook.com/CharleneIsraelCBNNews.