Obama: Payroll tax cut fight isn't over yet

The debate over extending the payroll tax cut appears close to being resolved, but President Obama on Tuesday told voters the fight isn't over yet.

"Washington shouldn't hike taxes on working Americans right now," Mr. Obama said from the White House. "That's exactly what's going to happen in a couple weeks if Congress doesn't do something about it," he said, noting that the typical American family will pay nearly $1,000 more in taxes this year if the payroll tax cut expires.

House Republicans on Monday announced they could consider extending the 2 percent payroll tax cut for the rest of the year without offsetting the costs with spending cuts -- a significant policy shift for the Republicans and a political victory for Democrats.

Still, there's a chance the deal could unravel. Sen. John Barasso, R-Wyo., one of the senators involved in the payroll tax negotiations, said Monday that the House GOP decision came as a surprise to him and that the GOP was still looking for ways to pay for the measure.

Mr. Obama said there were some "hopeful signs" from Congress, but added, "You can't take anything for granted here in Washington until my signature is actually on it. We've got to make sure the American people's voices keep breaking through."

Seeking perhaps the last bit of political capital he can win from the issue, Mr. Obama was joined at the White House Tuesday by working Americans who responded to the White House's "What Does $40 Mean to You?" campaign. The campaign sought to highlight the fact that if Congress fails to extend the payroll tax cut, the typical family making $50,000 a year will lose about $40 from each paycheck.

"Tens of thousands of working Americans flooded us with their stories," Mr. Obama said. "It would make their choices more difficult. It would mean $40 less in groceries to feed your kids... to cover bills and the rent... to take care of an elderly parent."

Echoing the themes he used in his State of the Union address and to explain his proposed 2013 budget, Mr. Obama said, "This is a make or break moment for the middle class in America and for folks who want to be int he middle class... We can settle for a country where a few people do really, really well and everybody else struggles to get by, or we can restore an economy where everybody gets a fair shot."

Just last week, House Speaker John Boehner told reporters that Republicans would continue to insist that "this spending ought to be offset with reductions in spending elsewhere." But with negotiations with Democrats stalled, House Republicans are opting to avoid another political beating over the issue.

The payroll tax bill could come to the floor this week. The House and Senate are scheduled to be on recess for all of next week for the President's Day holiday. When they return, there will only be two days to get a final bill to the president's desk before the tax cut and unemployment insurance expire.

"When the plane is lifting off the ground, you don't ease up on the throttle," the president said today. "Our plane is up there, but we're not at cruising altitude yet."

[Pro_America]

The republicans are willing to give America a tax cut. Democrats don't want to lower the government spending. How is this a victory for the democrats? Sounds like typical democrat stupidity to me.

[jimatmadison]

Let's see John Boehner's calculation on how we 'paid for' the Bush tax cuts.

Let's see any Republican's calculation on how we 'paid for' GW Bush's war of choice in Iraq. Or even the more necessary war in Afghanistan.

And what about the calculation on how we 'paid for' Medicare D'?

Then we can talk about fiscal responsibility.

[HarryOrielly]

I am the only president in history to completely hide his past history- That's because I committed a lot of crimes as a street hustler- sounds incredible but true- I met some rich people who covered up my past at the cost of millions- my FORGED birth certificate & multiple SSN's used in real estate scams are only a small part of my crimes- GOOGLE "LARRY SINCLAIR" to hear my old friend talk about our criminal past- I tried to setup & smear LARRY as a LIAR but believe him because I intentionally and deliberately covered up my past history- I even surrendered my law license to avoid investigation- I am a FRAUD who has deceived America-

[ge556]

Well, for such a fraud, he turned out to be a better president than most.

[achememnon]

Well you repugs don't have any good candidates running for President, and independents will not vote for the lunatic santorum so you guys have 4 more years of Obama to look forwards to, because you can't get a descent candidate to run on the republican ticket.

[jumkey]

Even when Obama gives the haters *exactly* what they want they STILL complain.

"Oh no, no black man is going to give me a tax cut!"

Raving racist lunatics.

Hey Mr. President, I'll take a tax cut, no matter what those big government loving Republicans think. I don't care what color his skin is as long as he's looking out for my interests.

[askagain]

The payroll tax cut is an illusion. A tax was added onto the total life of new mortgages to pay for this temporary tax cut. A person with a $200,000 will pay $9,000 to fund this payroll tax cut and the money will go into the general fund, not the Social Security Trust Fund. Does this really help working peoplo? Working people will need Social Security the most.

[wfw3536]

Obama keeps throwing seniors under the bus, taking the payroll tax and cutting it for a second year. Oh, it doesn't matter that he said this would only happen for one year, another broken promise, or does he care that the social security fund which is what it is designated for in funding will only be able to be funded at about 60 to 70% within the next 15 years. Oh, and then Obama keeps spending a trillion plus each year that we need to borrow,yet he promised when elected he would cut spending by 50%, just another broken promise and a typical politican who will promise anything to get re-elected.

[bobthegoodone]

I see nothing good coming from this tax cut , being all it is doing is underfunding SS !

[vielmann]

What??? More money for schools??? Now the GOP won't be having any of that!!! We like our people ignorant, it makes 'em easier to control! What? Money for infrastructure???? Forget about it!!! If you happen to be crossing a brigde that's about to collapse you should make your peace with Jesus, unless you're an athiest because for the GOP, you're just headed to hell to please their loving gawd.

[Raptorsmasher]

Very True!

[notyrants]

The global capitalists who extract the wealth that is derived from the labor and creativity of others rule over global non-democratic corporate governments. These non-transparrent, privatized governments pay in accordance to what will give the biggest bang for the capitalist who make money on money. It stands to reason that these capitalists would pay the sociopath CEOs enormous bonuses to screw over those who labor and create to insure that those who make money on money, can sit back while the wealth is redistributed to them via exclusive hedge funds and preferred stocks.