Senate Republicans have proposed wringing cost savings out of the federal work force and safety net programs to pay for an extension of the current payroll tax cut.
In a further sign that the debate had shifted to how to, instead of whether, to extend payroll tax relief, Senate Republicans would take a page from President Obama’s own fiscal commission and freeze salaries for federal civilian employees for three years. That would amount to a five-year pay freeze in total, given that a two-year policy is already in effect.
The plan would also accelerate the Simpson-Bowles framework for reducing the number of government employees by 10 percent, by only allowing the hiring of one new employee for every three who leave the federal workforce.
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