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Tuesday, November 29, 2011

Senate Democrats Push Obama Payroll Tax Cut

WASHINGTON (AP) -- Senate Democrats are pressing ahead on President Barack Obama's plan to cut in half every worker's payroll taxes next year — paid for by a 3.25 percent tax surcharge on the very wealthy.

The $248 billion plan would trim Social Security payroll taxes from 6.2 percent to 3.1 percent in hopes of propping up the still-weak economy. It also would cut in half the 6.2 percent tax paid by employers on the first $5 million of their payroll.

A spokesman for Senate Majority Leader Harry Reid, D-Nev., says Democrats will hold a test vote on the plan later this week.

A 2 percent payroll tax holiday enacted a year ago expires on Dec. 31 and it tops the agenda in the waning days of this congressional term.

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