Debating Payroll Taxes
Republicans and Democrats debate your payroll taxes.
It's December, that means congress has just a few weeks to decide if Americans will get another payroll tax cut next year.
Democrats want to pay for it by taxing the rich. Republicans say no way - they've got other plans.
President Obama says letting payroll taxes go up would mean a "massive blow" to the economy.
Your payroll taxes dropped 2% this year. That put an extra $1,000 in the pockets of working families. If congress doesn't act - you'll lose that money January first. "If that happens, a typical middle-class family will see $1,000 tax increase at the worst possible time for the economy and for these families," said President Barack Obama
Democrats want to pay for it by taxing millionaires. "A small surtax will generate enough money to give a payroll tax cut to thousands, millions of working families," said Senator Dick Durbin, (D) Illinois.
A vote's scheduled this week. Republicans say they'll block the millionaire tax. "We just think we shouldn't be punishing job creators to pay for it," said Senate Minority Leader, Senator Mitch McConnell (R-KY).
"It's okay for them to extend their tax cuts for the wealthiest without paying for it but when it comes to middle income families there always seems to be an excuse," Senator Ben Cardin, (D) Maryland.
Republicans want to pay for it by freezing pay for federal workers again - through 2015, cutting 200,000 government jobs raising Medicare premiums for the rich, and making sure millionaires can't get food stamps and unemployment. "If, in fact, we can find common ground on these extensions I think you can take to the bank the fact that they will be paid for," said House Speaker John Boehner/ (R) Ohio
"Tell them don't be a grinch. Don't be a grinch. Don't vote to raise taxes on working Americans during the holidays,” said President Barack Obama.
The Republican plan would only pay for two-thirds of what this tax cut extension would cost. The rest would be added to the deficit.
Tracie Potts, NBC News.