Obama Continues Push To Extend Payroll Tax Holiday

President Obama made a rare appearance in the White House briefing room today to call on Congress to quickly pass an extension of the current payroll tax holiday.

Nearly a year after he signed the tax cut into law, the president is urging lawmakers to keep it alive as a means to help middle-class workers who find themselves trapped in a weak economy. The White House estimates that doing so would save the average family about $1,500 next year.

“My number-one priority right now is doing everything that I can, every single day, to create jobs faster and to provide more security for middle-class families and those trying to get into the middle class,” Obama said. “And at this moment, that means making sure that nearly 160 million hardworking Americans don’t see an increase in their taxes on January 1st.”

Last year, Congress agreed to reduce the payroll tax rate paid by employees from 6.2 percent to 4.2 percent. This year, the White House and some Senate Democrats proposed reducing the rate even further, to 3.1 percent. Republicans, however, have been reluctant to support a renewal of the tax cut, arguing that it hasn’t worked to create jobs — the nation’s unemployment rate is 8.6 percent — and that it is taking funds away from Social Security.

Payroll taxes paid by businesses and their workers fuel the popular benefit program for seniors.

Moreover, Republicans have pledged to oppose Democratic efforts to offset the tax cut by imposing a small surtax on millionaires.

Obama said he interprets that as a sign the GOP is choosing to put the wealthy ahead of the middle class.

“I know many Republicans have sworn an oath never to raise taxes as long as they live. How could it be that the only time there’s a catch is when it comes to raising taxes on middle-class families? How can you fight tooth and nail to protect high-end tax breaks for the wealthiest Americans, and yet barely lift a finger to prevent taxes going up for 160 million Americans who really need the help? It doesn’t make sense.”

The president also asked Hill lawmakers to renew long-term unemployement benefits aimed at providing relief to roughly 1.3 million out-of-work Americans.

“It would be a terrible mistake for Congress to go home for the holidays without extending unemployment insurance,” he said. “For a lot of families, this emergency insurance is the last line of defense between hardship and catastrophe. Taking that money out of the economy now would do extraordinary harm to the economy.”

Obama did not take questions from reporters following his roughly seven-minute long statement.

This story was updated at 3:25 p.m.