"We are not going to go home to vacations," the Nevada Democrat told reporters on Capitol Hill. "Does this mean embarrassing Republicans, humiliating them? Probably - as it should."
Reid said Obama was ready to let the first lady and his daughters go on vacation without him, if necessary.
The majority leader said the president told him: "Michelle and the girls will have a great time in Hawaii; they don't need me there."
Republicans, who control the House of Representatives, have been unwilling to accept the Democratic plan for a surtax on millionaires to pay for extending the reduction in the payroll tax rate.
While the existing reduction brings the payroll tax from 6.2 percent down to 4.2 percent, the Democrats' proposal envisions further trimming the rate to 3.1 percent.
To finance the bigger cut, they want a 1.9 percent surtax on earnings above $1 million a year.
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