Paychecks Set to Shrink Unless Obama, Congress Break Impasse

Paychecks for 160 million workers will be reduced in January unless lawmakers break a stalemate that could dent U.S. economic growth and poses political difficulties for a Congress with low public approval ratings.

House Speaker John Boehner and Senate Majority Leader Harry Reid kept up the pressure on each other today while showing no intention of making concessions on a tax-cut extension that would break the logjam. President Barack Obama insisted yesterday that the only way to avert a payroll tax increase for workers in January is for the House to send him a two-month deal the Senate passed Dec. 17.