Democrats, Millionaires' Tax | featured news

Democrats backed away from their demand for higher taxes on millionaires as part of legislation to extend Social Security tax cuts for most Americans on Wednesday as Congress struggled to clear critical year-end bills without triggering a partial government shutdown.

Senate Democrats proposed Friday tax incentives for businesses hiring veterans as well as job training for all service members leaving the military. The measure was unveiled as the next piece in President Obama's jobs bill and as a remedy to unemployment among veterans.

Senate Democratic leaders are proposing a 5% surtax on those earning $1 million a year as a new way pay for President Obama's jobs plan, turning to an issue with populist appeal as they line up support for a vote, possibly next week.