(WASHINGTON, D.C.) -- The U.S. Senate continues to debate the extension of the payroll tax cut. The tax break ends December 31. North Carolina Sen. Kay Hagan said extending the tax cut would mean that a family of four would keep 1,350 dollars in their pockets.

"I know that many of those individuals are actually using that money to pay their mortgages, to put meals on the table, to pay for their medications, actually 4.7 million people in North Carolina benefit from this current payroll tax deduction," said Hagan. She added that overall tax reform is still needed.

The Democrat plan would actually raise the reduction to 3.1 percent, and they want to add a 3.25 percent surtax on those making over one million dollars a year to pay for it. Republicans feel that raising taxes on the wealthy would stifle job creation. However, Democrats counter that very few employers would be affected by the surtax.