WASHINGTON (AP) — Senate Democrats are advancing President Barack Obama’s plan to cut every worker’s payroll taxes in half next year — paid for by a 3.25 percent tax surcharge on the very wealthy.
The $248 billion plan would cut Social Security payroll taxes from 6.2 percent to 3.1 percent in hopes of propping up the still-weak economy. It would also cut the portion of the tax paid by employers on the first $5 million of their payroll.
A spokesman for Senate Majority Leader Harry Reid says Democrats will hold a test vote on the plan later this week.
Republicans are likely to oppose the plan since it would post a permanent surcharge on income exceeding $1 million.
A 2 percent payroll tax holiday enacted a year ago expires on Dec. 31.