President Obama's tax cut deal has passed the Senate, winning approval in a lopsided 81-19 vote. The legislation now moves to the House where progressive Democrats continue to seek modifications to the deal without actually killing the deal itself.
AP reports one such proposal would convert the Social Security payroll tax cut into a one-time refund check issued to all Americans:
House leaders were also considering a proposal by Rep. Brad Sherman (D-Calif.) to convert the payroll tax holiday into a one-time refund check that would be issued to every American worker early next year. Sherman said the alternative was designed not only to get cash more quickly into the hands of consumers, but also to protect Social Security. Some Democrats fear that Republicans would try to extend the one-year payroll tax holiday, permanently reducing the flow of funds to Social Security at a time when the GOP and deficit hawks in both parties are urging lawmakers to cut benefits for future retirees.
If any amendments were adopted in the House, the tax package would have to go back to the Senate for further action. But Sherman said House leaders made clear that they are "looking for changes that cause the bill not be dead on arrival in the Senate" - an outcome that would cause tax rates to rise next month for virtually every American worker.
"I'm confident that middle-class tax cuts will not expire and that we will go forward" with a vote on the tax package this week, Rep. Rob Andrews (D-N.J.), who often speaks for House leadership, said after the meeting.
House Majority Leader Steny H. Hoyer (D-Md.) told reporters earlier in the day that although "significant concerns" remain about the deal, the "overwhelming majority" of lawmakers in both parties think it's "absolutely essential" to approve a measure to prevent tax rates from rising across the board next year.
Proposals like the refund check idea will only be adopted if they are don't scuttle the tax cut deal, which means they will need the support of the White House and Senate Republicans. Any other proposals will likely be voted on as amendments, but House leadership will structure the votes in such a way that they are sure to fail.
Update: A new WSJ/NBC poll is consistent with the ABC/WaPo polling (discussed here and here) on the tax cut deal, with 59% supporting the deal and 36% opposing it. Support cut across party lines, with 54% of Democrats favoring it and 68% of Republicans supporting it. 40% of liberal Democrats and 20% of Republicans felt their side gave up too much.