Democrats Seek One-Year Tax Cut as Republicans Push Pipeline

Senate Democrats are focused on salvaging a one-year extension of the expiring payroll tax cut as they try to find enough spending reductions and other policy changes to cover the $119.6 billion cost, said two Democratic aides familiar with the talks.

Negotiators tentatively agreed on about $100 billion in savings to pay for the measure, including higher fees charged by Fannie Mae and Freddie Mac and the sale of a portion of the wireless spectrum, said one of the aides who spoke on condition of anonymity to discuss private details. The aide said lawmakers also are considering ways to reduce the $202.4 billion cost of the House-passed package without resorting to a two-month extension that Senate Majority Leader Harry Reid has described as “Plan B.”