Bachmann, Gingrich unhappy with payroll tax deal

CHARITON, Iowa--Rep. Michele Bachmann on Friday condemned the payroll tax deal between President Obama and congressional Republicans because of its effect on the Social Security trust fund, saying she warned last December about the issue. "It was a mistake a year ago, and it's a mistake today," she said.

The extension of the payroll-tax cut doesn't harm the trust fund's solvency, because the shortfall is made up with payments from the general fund and the trust fund suffers no loss of income.

But Bachmann said, "We all know that the federal government's broke, so that would mean either more borrowing or more adding to the debt.... Even if the money was in the Social Security trust fund, we would be depriving the trust fund of that money that we will need in the future."

She said that as president, she would tackle the larger issue, which she contended means scrapping the tax code.

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"I want to see tax rates go down; that's why I intend as president of the United States to abolish the tax code, and I'm going to lower the tax rates together with the Congress on businesses and on individuals. I want to see the marginal rates lowered, but I also think it's important that everyone pay something."

Meanwhile, Newt Gingrich also blasted the deal while campaigning in Columbia, S.C.

"There's something profoundly wrong in this economy, with the problems around the world threatening to make it worse, to have the president and the Congress think they have accomplished something by passing a two month extension of one item." Gingrich said in a speech.

Asked what he would have done if he was still House speaker, Gingrich responded: "I have no idea -- the idea of trying to negotiate with Barack Obama strikes me as almost impossible. So I have no sound solutions or suggestions for anybody."

Full CBS News coverage: Michele Bachmann