Payroll Tax Break Deadlock in Washington

House votes along party lines rejecting Senate deal to extend the cuts.
2:51 | 12/20/11

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Transcript for Payroll Tax Break Deadlock in Washington
-- field was showdowns in government shutdowns there was another political breakdown over the payroll tax cuts set to expire on January 1. A 160 million Americans are affected by the average family will pay an extra thousand dollars in taxes if it goes away. And an overwhelming majority of Democrats and republics in congress wants to keep it. But as ABC's Jon Karl reports they are deadlocked on how to do it again. It's christmastime in the capital. Washington -- typically they range. From the White House the president pleaded with house Republicans to do what the senate has already -- Temporarily extending the payroll tax cut in unemployment benefits for two months I -- the speaker. And house Republicans. To do this thing. -- put politics aside. Put aside issues where there are fundamental disagreements. And come together on something we agree -- But the house rejected the senate -- today demanding talks on a compromise that would extend the tax cut for a full year. The president of course has just said he appealed to you personally said. I need John Boehner said helped out and has. I need the president to help out -- Hanging in the balance the paychecks of 160. Million Americans. Without action by January 1. We'll all be paying on average twenty more dollars a week in taxes and about 2.5 million of the long term unemployed will lose their benefits finally. Doctors who treat Medicare -- we'll see their payments slashed by 27%. Don't be a great President Obama has repeatedly said he would not leave for his planned Christmas vacation in Hawaii in. Intel which resolved and we can all spend Christmas or got late last week it looked like it was -- Democrats and Republicans negotiated -- month extension. Republican senate leader Mitch McConnell seemed thrilled with the deal even high fighting fellow Republican John Barrasso but house Republicans said. -- winning a two month extension is nothing more the kicking the can down the road. Tonight John McCain is warning his Republican colleagues in the house that they are quote harming the Republican Party. By refusing to pass the bipartisan senate bill. Senate Democrats meanwhile told -- there will be no more negotiating. The house either passes the senate bill or takes the blame for a tax increase hitting 160 million American story. And -- the White House today was telling me that they expect house Republicans to cave. Any signs of that. No signs of it all yet George they -- saying that -- standing firm bear believed that they believe they are right on the substance that they extension should be for a full year. But we'll see how plays out -- could be well past Christmas Jon Karl thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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