WASHINGTON (Reuters) ? A federal worker pay freeze would be extended and new savings would be squeezed of out jobless benefits, food stamps and federal health care under a Senate Republican proposal to pay for renewing an expiring payroll tax cut, congressional sources said on Wednesday.
The sources said the proposal would be formally offered by Senate Republicans later in the day. Senate Democrats have an alternative proposal to extend and expand the payroll tax cut and cover the cost with a new tax on annual income of more than $1 million.
(Reporting by Thomas Ferraro and Richard Cowan; Editing by Sandra Maler)
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