Payroll package committee makes slow progress

With the deadline approaching, negotiations over a package that would extend the 2 percent payroll tax cut and other provisions through the rest of the year are reaching a critical point.

According to The Associated Press, members of the House-Senate conference committee charged with coming to an agreement have made "halting progress," although there's still a long way to go.

In addition to extending the 2 percent payroll tax cut, the $150 billion bill backed by President Barack Obama would renew long-term unemployment benefits and remove a scheduled 27 percent Medicare pay cut for physicians.

Negotiators have been able to maintain civility and cooperation throughout the talks, and were able to agree upon noncontroversial aspects of the legislation, such as extending a tax break for small businesses that purchase new equipment.

However, there are still significant barriers preventing the package from becoming reality, and negotiations are not progressing fast enough to meet the February 29 deadline set by the Temporary Payroll Tax Cut Continuation Act of 2011, which was passed just eight days before the 2011 provisions were scheduled to expire.