With both parties unable to reach agreement on extending the payroll tax cut, Sens. Susan Collins, R-Maine, and Claire McCaskill, D-Mo., offered up a bipartisan compromise that would pay for the cut with a 2 percent surtax on millionaires, The New York Times reports.
Small-business owners who report business income on personal tax returns would be shielded from the surtax, a protection which Collins called "potentially a breakthrough."
The proposal would extend -- but not expand -- the current payroll-tax holiday for employees and cut taxes for employers as well.
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