House GOP rejects 2-month payroll tax cut

WASHINGTON - (AP) - The House has rejected a plan backed by President Barack Obama to extend a 2-percentage point payroll tax cut for two months.

Republicans are demanding immediate talks with the Senate on a year-long extension. Without a bill extending the cuts, payroll taxes will go up for 160 million workers on Jan. 1. Almost 2 million people could lose unemployment benefits as well.

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