President Obama will make a Wednesday appearance at Scranton High School, where he will urge Congress to extend and expand the existing payroll tax cut. The legislation, dubbed the Middle Class Tax Cut Act, is actually sponsored by Senator Bob Casey (D-PA). Without Congressional action, the existing payroll tax break of 2% will expire at the end of the year. “Not extending the payroll tax cut would be raising taxes on middle income families,” Casey explained.
Casey’s plan would both extend it and expand it to 3.1%. “That kind of a cut would put $1,500 – as opposed to last year’s number of $1,000 – $1,500 into the pockets of the average family next year,” Casey said during a conference call with reporters.
For instance in Cameron County, where the median household income is $36,536, the savings from Casey’s proposed payroll tax cut would be $1,133. In Chester County, where the median household income is $81,380, the savings would be $2,523.
The bill would be funded through a surcharge on income that exceeds $1-million dollars, which is leading to likely Republican opposition. Democrats are expected to bring it up for a test vote as early as this week.