Senate Defeat Leaves Payroll Tax Cut in Limbo [AUDIO]
WASHINGTON, D.C. – The U.S. Senate has defeated competing Democratic and Republican plans to extend a cut in the payroll tax, that punts the issue over to the House.
President Barack Obama and most Democrats want a payroll tax cut of 3.1%. Meanwhile, many Republicans would prefer to just extend the current 2% tax cut.
WJON News had a chance to talk with one of President Obama’s top advisers on the issue this (Friday) morning. Jason Furman is the Deputy Director of the National Economic Council. He says both sides agree that any tax cut should not add to the national deficit, however they’re at odds over how to pay for it.
Republican leaders say they would prefer freezing federal workers’ pay through 2015, and cutting the federal workforce by 200,000.
The two sides have until the end of the year or the taxes taken out of your paycheck will go back up to the full 6.2%.