12/01/2011

"'Massive blow' if GOP blocks payroll tax"

Does it matter that the Republicans also support this extension or that the idea for this type of cut originally came from Republicans? The only reason that there is a debate over this tax cut is because the Democrats are insisting on attaching it to a tax increase on other people. The Associated Press:

Blending governing with re-election politics, President Barack Obama roused a cheering northeast Pennsylvania crowd Wednesday as he warned of a "massive blow to the economy" if Republicans block a payroll tax extension.


Obama then contradicted this claim at a later talk the same day.

Later, in donor-rich New York City where he was raising money for his already flush re-election bid, he took a more conciliatory tone, acknowledging that Republicans such as House Speaker John Boehner of Ohio and Senate Minority Leader Mitch McConnell of Kentucky were also willing to extend the payroll tax, though not with a tax increase on millionaires.

"For the last couple of days Mr. Boehner and Mr. McConnell have both indicated that it probably does make sense not to have taxes go up for middle class families, particularly since they've all taken an oath not to raise taxes," Obama told about 50 donors at a Greenwich Village restaurant. "And so it's possible we'll see some additional progress in the next couple of weeks that can continue to help strengthen the economy." . . .

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