WASHINGTON (AP) ? President Barack Obama is doubling down on a payroll tax cut for workers and small businesses. He’s hoping it will do more to revive the job market than a smaller version has done this year.
Obama wants to extend and expand a payroll tax cut that is scheduled to expire at the end of the year. The current tax cut, which applies only to workers, reduces Social Security taxes from just over 6 percent to just over 4 percent. Employers still pay the 6.2 percent rate, which is applied to wages up to $106,800.
The tax cut is part of a package of nearly $450 billion in tax reductions and new federal spending that Obama unveiled Thursday night.