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Obama calls for extending payroll tax cut; plan would expand it to small employers
WASHINGTON (AP) ' President Barack Obama is calling for extending and expanding 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 federal Social Security pension 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.