WASHINGTON — 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., said Democrats would hold a test vote on the plan later this week.
The 2 percent payroll-tax holiday enacted a year ago expires on Dec. 31. Republicans are likely to oppose the plan because it would post a permanent surcharge on income exceeding $1 million, including income earned by many small businesses.
Reid’s move is the latest political salvo by Democrats as the two parties spar over the best way to create more jobs. Monday’s move appears aimed at drawing a distinction between Democrats and Republicans on taxes, with Reid seeking to maneuver Republicans into opposing the payroll-tax cut.
Indeed, the payroll-tax cut is unpopular with many Republicans who say the existing 2 percent cut hasn’t done much to create jobs.
