Obama calls for full year payroll tax cut extension "without drama, without delay"

President Obama today commended Congress for breaking its stalemate over the payroll tax cut "just in the nick of time for the holidays," and preventing 160 million Americans from seeing a 2 percent tax hike on January 1.

However, the president said passing the tax cut extension in the current economy should be a "formality," and dnce Congress returns from its holiday break, Mr. Obama said, lawmakers should pass a full, one-year extension "without drama, without delay."

Extending the payroll tax cut will give Americans more money to spend, which will boost the economy, Mr. Obama said -- "a boost we very much need right now."

Had Congress failed to act, some 160 million Americans would have seen their payroll tax for Social Security rise from 4.2 percent to 6.2 percent (the 1.45 percent payroll tax for Medicare remains in tact). In addition to preventing the tax increase, the legislation passed Friday extends unemployment benefits and prevents doctors from taking a cut in Medicare payments.

House Republicans initially opposed the two-month extension passed in the Senate last week, arguing in favor of a full, one-year extension. But after taking a political beating for holding up the bill, they struck a deal on Thursday to accept the Senate bill with added language to benefit small businesses.

Congress now has two months to work out its differences, which largely come down to a disagreement over how to pay for the tax cut. Senate Majority Leader Harry Reid said today Congress will have to be "somewhat inventive" to reach a compromise.

Mr. Obama said, "This continues to be a make or break moment for the middle class in this country," and he expects Democrats and Republicans to "roll up our sleeves" to work together.

The president pointed out that the tax cut translates into an extra $40 per paycheck for a family making $50,000 a year. The White House launched an aggressive campaign using that piece of trivia to drum up public support for extending the tax cut, asking citizens in an email, "What Does $40 Mean to You?"

Thousands of people responded to the question, and Mr. Obama thanked people for weighing in.

"I think it takes courage to believe your voice makes a difference," Mr. Obama said. "You reminded people in this town what this debate and what all of our debates should be about -- it's about you, it's about your families."

Now that the two-month tax cut extension is signed into law, Mr. Obama will join his family in Hawaii for the holidays.

[lg144]

GOP = GREEDY ONE PERCENT

99 Reasons To Snub Republicans In 2012

We Snub Republicans 2012

[Not_a_fan_2011]

Yeah, but we all know there will be drama, right? Remember how the House Repubs. said all they really wanted was a one year extension? Watch how quickly they tie lots of strings to that one-year extension, until it is something that could never pass. And then, once again, blame the Democrats. We've seen this show too many times.

[USMARINE1967]

This Marine is reporting for duty and ready to defend the our Constitution against all the domestic enemies. You are a clear and present danger to our way of life. American freedom will not be shackled by bigotry, homophobia, religious intolerance,and sheer unethical greed that stacks the rules to benefit those how are already on top!

You people are a sorry waste of human DNA. Birthers! What idiots would actually publicly prob-legate this horse manure. For what you believe to be true, the NSA,CIA, FBI, NCIS, The Secret Service, US State DEPT, and Homeland Security, would all have to be a part of this conspiracy. I'm talking about the Bush Administration who did all the investigations on then Sen Obama.

Now let me think.. as a former Marine with NATO Secret Security Clearance, who's family,friends, and acquaintances know all to well about the significance of my clearance, as they were, on my behalf investigated.

Now who do I believe, some obscure Right wing nut who couldn't get a clearance to sell me a piece of bubblegum, or the most respected collection of security, intelligence,information gathering and analysis agencies in the history of the world...Oh by the way as far as I know, I was 2 levels down from the top..Top Secret and Presidential Top Secret! You people are a joke!

I will be here patrolling and armed with FACTS not FAUXS from Fox News.

[RobAla]

Some have asked for a source regarding this so called "tax cuts" of 2 months being paid for by a permanent tax increase on home mortgages:

Associated Press: 12/17/11
WASHINGTON (AP) — Who is paying for the two-month extension of the payroll tax cut working its way through Congress? The cost is being dropped in the laps of most people who buy homes or refinance beginning next year.
The typical person who buys a $200,000 home or refinances that amount starting on Jan. 1 would have to pay roughly $17 more a month for their mortgage, thanks to a fee increase included in the payroll tax cut bill that the Senate passed Saturday. The White House said the fee increases would be phased in gradually.
The legislation provides a two-month extension of a payroll tax cut and long-term unemployment benefits that would otherwise expire on Jan. 1. It would also delay for two months a cut in Medicare reimbursements for doctors that is scheduled to take effect on New Year's Day. The House is expected to act on the bill early next week. Two more months of the Social Security tax cut amounts to a savings of about $165 for a worker making $50,000 a year.
To cover its $33 billion price tag, the measure increases the fee that the government-backed mortgage giants, Fannie Mae and Freddie Mac, charge to insure home mortgages. That fee, which Senate aides said currently averages around 0.3 percentage point, would rise by 0.1 percentage point under the bill. The increase will also apply to people whose mortgages are backed by the Federal Housing Administration, which typically serves lower-income and first-time buyers.

The higher fee would not apply to people who currently have mortgages unless they refinance beginning next year.

[nearl451]

Go ahead and post this a few more times. It's not like you seem desparate or something. Who cares?!

[ch47fe]

What u Lu yards don't understand is that this is not a payroll tax cut....u are allowing this administration to break social security more than it already is....talk that to me when u are eligible for payout and the money is not there......I knew my comments would be jumped on by a bunch of liberal idiots that don't realize where this money is coming from....thanks for proving me right.....

[Not_a_fan_2011]

You're right about how it's being paid for, and I agree that shouldn't continue. But what you are overlooking (that I'm sure you know) is that Democrats have proposed other, better (IMHO)ways of paying for these things, that Republicans routinely shoot down.

[radsenior]

There should be no drama. I do believe it's the Treacherous Enterprising Antagonist party who is mostly responsible as they are confrontational and nonconciliatory in their habits. Rules are for others to follow. Maybe the Fed up American public can give Boehner a gift by throwing out all the Tragic Erratic Activist party minions. Cantor and his caucus are behind the spiraling TEA, GOP, Republican split. These fringe minions rode local apathy to the state level and seek national dominance and have even floated a party to challenge Boehner himself! Face it, sitting out elections at the local level, while evangelicals and others made great strides in moving their issues to the forefront pushed the Democratic party back on their heels making them defend the debt and Social programs. Caucuses are run by those who show up and push their agenda. Primaries are more open, but can be coordinated with peoples explosions. Do not let the Democrats control the conversation of "The economy" or "Jobs", make sure taxes are not raised for any reason. Revenue Enhancement should be protected at any cost! Remember now, the TEA party will continue to scream and yell loudly, as they think we cannot hear them, but vote them out anyway. We need to get back to the old money and power structure of yesteryear.

[spacetoy]

You know the G.O.P are to stupid to do this without drama I would give the people a choice with there tax the government holds twice as much money out of a persons paycheck each week for one year locking this money into CD `s of the persons choice and after one year the person is gave back there original amount the government gets the interest drawn over the year also this will help the business because of those who have the CD`s will have more money to hire and upgrade and each person hired from this plan the business that hired them would have to pay zero business tax on the profit they made for the first 4 months this would make lower tax on everyone plus to hire new workers would come with a reward also this would pay for its self

[DoctorGlennPHD]

Of course companies and corporations want to cut costs. What a dumb statement. The idea behind corporations is to return a profit on goods distributed. Obama couldn't manage a ***** house much less the presidency. And, no I'm not a Republican. I intelligent enough to be a free thinker and independent voter.

[Jesus_Loves_Children]

Safe & Sound*

Just close your eyes
The sun is going down
You'll be alright
No one can hurt you now
Come morning light
You and I'll be safe and sound

* The Hunger Games, Taylor Swift

[venusvegasvada]

Yeah, good luck with that.

[wfw3536]

Obama must be happy that for a second year he and congress are raiding the flat tax or social security fund. In 10 to 15 years seniors will be lucky to get 70% of their SS benefits. Obama promised a year ago that this was a one year fix, just another broken promise while he throws seniors under the bus.

[BlameRepublicanz]

he tried to uphold his promise but Republicans decided to attach a bunch of cultural grenades to their "one year deal"...they said "sure we'll agree...but we want an oil pipeline built!"...they rejected deal after deal...there is no one to blame for only getting a two month other than House Republicans

[moretruthnow]

Lets see who keeps raiding everything. When the GOP refuses to even increase taxes on a millionaire with a small fee on the amount they make over one million to pay for this tax cut and the GOP refuses to consider it. That is why we are in this right wing extremist debacle. The GOP for the 1 per cent and the Democrats still trying to dig this country out of the recession caused by republican war mongering, tax cuts for the wealthy and more and more subsidies and benefits to the corporate elite.