Observers of the current showdown in Washington, D.C., realize that Republicans and Democrats in Congress both want to extend the payroll-tax cut another year.

Democrats have been fighting to retain the break for workers and employers. The tax would boost the amount of spending money available to 160 million mostly middle-class workers and spur the economy.

Experts say the payroll-tax break scheduled to expire at the end of 2011 would ding economic growth by about 1 percentage point if allowed to lapse. It should not.

Deficit-focused Republicans have admitted 2012 is the wrong year for the higher rate to be reinstated.

“If we don’t extend the payroll tax (cut), we’re giving the Democrats an issue,” said Rep. Peter King, R-N.Y. “There is no need to give it to them.”

With the economy so precarious, motives do not matter. Meeting in the middle does. If both parties are willing to extend the break, they should pay for its cost with a mix of ideas advocated by both sides.

Democrats last week offered a plan they will have to recast. Instead of reducing the payroll tax for employers and workers, the party’s latest iteration would only retain the cut for employees.

No, the payroll-tax holiday should benefit both employees and employers.

The estimated $1,000 saved by families annually flows directly into the economy via purchases of food and appliances and payment of rent.

Both sides agree that any extension of the tax break be paid for. That could be accomplished with commensurate cuts, as Republicans propose, including freezing federal workers’ pay and reducing the federal civilian workforce. Democrats would cover the cost with a surtax on the wealthy. That is workable on those with salaries of $5 million a year or more instead of the $1 million a year proposed.

Mix and match ideas from both sides to continue the tax break and pay for it another year.

Extending the payroll-tax deduction will do some damage to Social Security. But for the next 12 months, that legitimate worry is overshadowed by the fact that American families and the overall economy need the lift.