This version of The Middle Class Tax Cut Act of 2011, as would an earlier version of this bill that was brought before the Senate, would continue through the end of 2012 a reduction in the payroll tax for workers that was contained in economic stimulus legislation President Obama signed into law in late 2010. However, this particular bill would leave the portion of the payroll tax paid by employers unchanged.

Payroll taxes are used to finance the Social Security trust fund, and the legislation calls for replacing the funds that would have been collected through the payroll tax with general fund revenues. Those revenues would be raised through a 1.9 percent surtax on individuals earning more than $1 million a year that would take effect in 2013. There would also be a 50 percent surtax (or 55 percent surtax in 2011 and 2012) on any unemployment compensation received by a taxpayer with an adjusted gross income of at least $1 million.

Additional savings to offset the payroll tax cut would be achieved through rendering members of households with income or assets in excess of $1 million ineligible for the Supplemental Nutrition Assistance Program, commonly known as the "food stamp" program. There would also be a phased increase in the fees charged to mortgage lenders by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to guarantee payment of new mortgage loans.

The bill failed on a cloture motion, 50-48, with 60 votes required for the legislation to proceed to formal debate and a final vote. Forty-eight Democrats, one Republican and one independent voted in favor; 46 Republicans, one Democrat and one independent were opposed. Two Democrats did not vote.