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Republicans under pressure over payroll tax cut

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WASHINGTON (Reuters) - Congressional Republicans were under growing
pressure on Wednesday to agree to a 60-day extension of an expiring
payroll tax cut for 160 million workers and end a stand-off with
Democrats that threatens to undercut a fragile U.S. economic recovery.

The Republican-led House of Representatives on Tuesday rejected a
two-month extension of the tax break that had been passed overwhelmingly
by their Republican colleagues and by Democrats in the Senate, and
demanded fresh negotiations on the issue.

Senate Democrats, sensing they have a political advantage on an issue
that has sharply divided Republicans in the Senate and the House, are
refusing to reopen negotiations. Most have already left Washington for
the holidays.

"I urge you to reconvene the House to act on the Senate's bipartisan
compromise as soon as possible," Democratic Senate Majority Leader Harry
Reid said in a letter on Wednesday to House Speaker John Boehner, the
top Republican in Congress.

As both sides escalated the war of messages, Boehner called
reporters, photographers and TV crews to a room on Capitol Hill where he
sat at a high-glossed wooden table flanked by House Republican leader
Eric Cantor and eight House Republican negotiators.

"We are here ready to do our work," Boehner said. Across the table
were the empty chairs reserved for the Democratic negotiators.

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