ABC News Update

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2:12 | 12/02/11

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Transcript for ABC News Update
The fight over payroll tax measure continues on capitol held -- house is trying to broker a deal. After two measures to extend the payroll tax cut failed in the senate last night. ABC's Karen Travers has the latest on the. Eight. Senate Democrats and Republicans have been deadlocked over how to pay for a payroll tax cut extension. And last night -- dueling plans both failed. At this owner of the dispute huge disagreements over the costs of this key element of the president's jobs agenda. Majority leader Harry Reid called the Republican plan a back door route to protect the rich. Our proposal would put more money in the hands of the middle class. -- would be paid for in a very simple way. For Democrats that means tax increases on the wealthy. Republicans say the payroll tax cut extension is too costly and hasn't created jobs. They've approved in the past but now they insist that it being paid for with spending cuts. Millions of Americans have had to go without or to live with lust over the past few years. Yet all they -- here is that Washington just keeps getting bigger. And bigger. And richer. The White House says that if congress doesn't pass this extension of Stanley of the household income of 50000 dollars -- -- taxes rise by 1000 dollars next year. It would take money. Out of the pockets of Americans were most likely to spend it and it would harm small businesses that depend on the spending it would be a bad idea. Last night's failure means the house -- gets a chance to roll out a plan but the same bitter partisan differences over how to pay for it are likely to dominate the debate. The senate will now try and hammer out a compromise but aides to both parties say congress will not recess for the holiday break until they reach a deal. That means it can be not so Merry Christmas on Capitol Hill. Karen Travers ABC news Washington. Former New Jersey governor Jon Corzine has been ordered to appear on Capitol Hill next week as the house investigates the collapse of MF global. Corzine it was and -- CE when the company went bankrupt in October. One point two billion dollars in customer accounts remains missing.

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

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