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Republican payroll tax cut plan fails in Senate

WASHINGTON (Reuters) - The Senate on Thursday blocked a Republican plan to extend the payroll tax cut for workers for one year.

By a vote of 78-20, the Senate defeated the Republican legislation. Earlier, the Senate killed a Democratic version of the payroll tax cut extension.

Senate leaders are expected to begin negotiating a compromise. Under current law, the payroll tax cut for workers is scheduled to expire on December 31.

The House of Representatives has not yet come up with its version of a payroll tax cut extension but is expected to do so now that Speaker John Boehner has signaled his support.

(Reporting by Richard Cowan)

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