President Obama on Wednesday called on Republican lawmakers to support passage of an extension of a payroll tax cut, warning that a failure to pass an extension could result in higher taxes.
“Are you going to cut taxes for the middle class and those who are trying to get into the middle class or are you going to protect massive tax breaks for millionaires and billionaires?” Mr. Obama said during his latest campaign stop in Pennsylvania. “Are you going to ask a few hundred thousand people who have done very, very well to do their fair share or are you going to raise taxes for hundreds of millions of people across the country?”
“Send your senators a message,” the president added. “Tell them, ‘Don’t be a Grinch!’”
Speaking to a group of supporters on Wednesday, Mr. Obama met with a family in Scranton, Pennsylvania, the birthplace of Vice President Joe Biden, before traveling to a nearby high school in what will be a battleground state in next year’s presidential election. Mr. Obama is slated to travel to New York City late Wednesday as part of a series of fundraisers for his re-election campaign.
Mr. Obama’s message echoes earlier sentiment expressed by the White House. Speaking earlier this week, Mr. Obama said the latest debate over extending the payroll tax cut was simply Washington-style politics.
“I hope that they don’t just want to score political points,” Mr. Obama said of his Republican rivals. “This cannot be about who wins and loses in Washington.”
Mr. Obama’s latest campaign stop comes as Senate Democrats are scheduled to hold a vote later this week on legislation that would cut the payroll tax from 6.2 percent to 3.1 percent and would be paid for with a surcharge of 3.25 percent on earnings above $1 million. The legislation would also cut in half the first $5 million payroll tax paid by most small businesses.
Republicans have expressed concerns with Mr. Obama’s plan, noting that it would increase the nation’s overall debt. Congressional Democrats have urged passage of the measure, saying the savings are offset by increases on individual making more than $5 million.
Speaking earlier this week, Sen. Jon Kyl (R-Arizona)said Sunday that Republicans are hesitant about extending the payroll tax holiday.
“The payroll tax holiday has not stimulated job creation,” said Mr. Kyl while on “Fox News Sunday.” “We don’t think that’s a good way to do it.”
Congress has until the end of the year to extend the payroll tax holiday. If it fails to act businesses will likely increase the amount of money that is taken out of paychecks to pay for Social Security taxes.
