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Obama, Democrats weigh dropping millionaires tax

WASHINGTON (Reuters) - President Barack Obama and Senate Democrats on Wednesday discussed abandoning efforts to impose a surtax on millionaires to help pay for extending a popular payroll tax break for workers, a Senate Democratic leadership aide said.

Obama and fellow Democrats in Congress are trying to find a way to pass the payroll tax extension in the face of stiff Republican opposition to the millionaires surtax.

The tax workers pay to the Social Security retirement system will rise to 6.2 percent from 4.2 percent at the end of the month unless Congress acts to extend the lower rate.

(Reporting By Donna Smith)

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