What's your thought?
The Obama administration, as part of last-minute negotiations with congressional leaders over the expiration of the Bush-era tax cuts, is proposing a one-year payroll tax reduction that would cut the amount contributed to Social Security from 6.2 percent to 4.2 percent, a senior congressional aide confirmed to Fox Business.
News of the proposed payroll tax reduction, originally reported by the Wall Street Journal, came ahead of a White House news conference Monday evening in which President Obama renewed his calls for tax relief targeting the middle class and his criticism of making tax cuts for the wealthiest Americans permanent.
But in the end, he said, a compromise must be reached before the Bush-era tax cuts expire at the end of the year, because letting the cuts expire "would be a chilling prospect for the American people."
Ordinary Americans would become "collateral damage for political warfare in Washington," he said. "I am not willing to let that happen."
Obama outlined a deal with congressional leaders that would extend the expiring tax cuts for all Americans temporarily for two years. Unemployment benefits for long-term jobless would through next year. And a lower estate tax rate would be extended temporarily.
"I have no doubt that everyone will find something in this compromise that they don't like," he said, but "we cannot play politics at a time when the American people are looking for us to solve problems."
Democrats have generally argued that the tax cuts should not be extended for the wealthiest 2 percent, while Republicans argue that the cuts should be extended for all taxpayers.
Sources tell Fox News that a payroll tax reduction, if approved, would take the place of the Obama-backed "Making Work Pay" tax credit that gave up to $400 to individuals and $800 to couples through the economic stimulus package. Obama had pressed for an extension of the tax credit, but Republicans objected.
I think the Republicans have nothing to lose by pushing for the Bush tax extentions. The Republicans better stand their ground or they will get voted out as a party next time arround. If the Democrats stick to their guns and raise taxces on all Americans it will be their lose come 2012. The Democrats are clueless when it comes to creating or saving jobs. Just look at our unemploymnent numbers since they did their voodoo.
You're right they have nothing, or very little to lose, Chris. But I am torn between whether I like the cuts to SS or not.
I still feel that a 3 year extension of the Bush era cuts would be the minimum acceptable to me. In 2 years, we'll be right back in the same situation as we are now.
But we will have both hoiuses of Congress and the presidency. The Republican Party needs to look to the future because at the rate the Democrats are going they will own the government.
Libs focus so much energy on the Millionares, like the Feds are being robbed.
Hey Obama, it's not YOUR money, you greedy ass!
Maybe if Obama was more positive about the actual pepole that 'create' jobs, unemployement would have gone down and they would have faired better in the last election.
How does a highly educated guy get so stupid? He joins the liberals party!
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