WSJ: White House Proposes Payroll-Tax Holiday

[SnyderShrugged]

http://online.wsj.com/article/SB10001424052748704156304576003441518282986.html?mod=WSJ_hp_LEFTWhatsNewsCollection

WASHINGTON—Aides to President Barack Obama are proposing a one-year reduction in the payroll tax as part of negotiations with Congress on a broader package to stave off income-tax increases due to take effect next year.

Earlier

As the White House and Republican leaders try to reach a deal to extend cuts, one idea that could gain traction is a temporary payroll-tax holiday. Jerry Seib has details. Plus, T. Boone Pickens' wife says 'nay' to Nevada ranchers.

Under the White House plan, the Social Security tax paid by workers would drop temporarily by 2 percentage points, to 4.2% from 6.2%, a person familiar with the proposal said. For a worker earning $40,000, the tax savings would be $800.

The proposal has not won the approval of congressional Democrats or Republicans. Its emergence in the broader tax negotiations is a sign that the White House is trying to break the logjam on those talks before the end of the year, when tax cuts signed into law by former President George W. Bush are due to expire.

White House officials proposed the cut as a way to stimulate the economy, said the person familiar with the talks. The proposal would take the place of an earlier White House push to extend Mr. Obama's signature Making Work Pay tax cut, which reduced income taxes for middle-income individuals by $400 a year.

more at link

---------- Post added December-6th-2010 at 06:19 PM ----------

The headline is a bit off, its just a one year 2% reduction in soc sec

---------- Post added December-6th-2010 at 06:24 PM ----------

"White House officials proposed the cut as a way to stimulate the economy,"

hmmmmm

---------- Post added December-6th-2010 at 06:37 PM ----------

Obama, GOP reach deal to extend tax cuts

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/06/AR2010120605923.html

apparently, its part of a broader deal to extend the tax cuts.

this is Obama's attempt at going bubba.