Government Shutdown

Shutdown Averted As Dem, GOP Leaders Hash Out Payroll Tax Deal

Brian Beutler | December 15, 2011, 9:52PM

Senate Majority Leader Harry Reid (D-NV)

House and Senate leaders have reached an agreement on a deal to avoid a government shutdown, and are nearing a separate deal on legislation to renew a soon-to-expire payroll tax cut, unemployment benefits, and a "doc fix" measure to prevent a steep, automatic pay cut to Medicare physicians.

The breakthrough comes just over 24 hours before funding for the government was set to run out, though the principals continue to squabble over policy measures and payfors attached to the payroll bill.

Democrats have officially dropped their push for a small surtax on millionaires as one means of offsetting the cost of the bill. And it's unclear what they got in return, aside from a pledge from Republicans not to jam Democrats with their partisan payroll tax bill.

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