WASHINGTON (AP) — Typical workers would get an extra $1,500 in their paychecks next year under a plan by President Barack Obama to expand a payroll tax cut that is scheduled expire at the end of the year. Higher paid workers would get more, and businesses would get tax breaks, too.
The tax cuts are part of a nearly $450 billion package of tax reductions and new spending designed to revive the economy and entice employers to hire more workers at a time when the national unemployment rate is stuck at 9.1 percent.
The goal of cutting payroll taxes is to increase take-home pay for workers in the hope they will spend the money, creating more demand for consumer goods and services. Under Obama's plan, workers making $50,000 a year would see their take-home pay boosted by $1,550 next year; those making $100,000 would get $3,100.
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