All Worker’s Taxes Will Be Raised 2% Next Year
The 2 percentage point reduction in the 6.2 percent payroll tax, first enacted last year, had been a major element of President Barack Obama’s proposals to rejuvenate the economy. The effort to renew it for 2012 prompted a prolonged battle with Republicans last winter, especially in the House, and resulted in an eventual GOP surrender and a major victory for the president.
There has been little talk among Democrats about reviving the payroll tax cut yet again for next year, and Obama did not propose renewing it in his 2013 budget. Even so, few Democrats until now have said openly that the measure should be allowed to lapse.
The head cheerleader for this move is Nanny Pelosi -