Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
04:15 AM Beirut time
18 °C
Blom Index
Follow this story Print RSS Feed ePaper share this
Obama administration looking at new tax cut -Washington Post
President Barack Obama holds up a printed copy of his jobs plan as he speaks at a campaign event at Burke Lakefront Airport Thursday, Oct. 25, 2012, in Cleveland. (AP Photo/Tony Dejak)
President Barack Obama holds up a printed copy of his jobs plan as he speaks at a campaign event at Burke Lakefront Airport Thursday, Oct. 25, 2012, in Cleveland. (AP Photo/Tony Dejak)
A+ A-

WASHINGTON: The Obama administration is considering a possible tax cut that would increase workers' take-home salaries and replace the payroll tax reduction set to expire at the end of the year, The Washington Post reported on Friday.

Citing sources familiar with the administration's thinking, the newspaper said the new tax reduction could add hundreds of dollars to employees' annual pay and show up in every paycheck.

The White House said no new tax policy suggestion had been formulated.

"There's no specific new proposal such as this one at this time," a White House official said.

"The very first thing Congress should do is the House needs to follow the Senate's lead and pass the bill the president proposed to ensure taxes don't go up on 98 percent of Americans at the beginning of next year," the official added.

The Post said the administration believed the economy could use further stimulus despite signs of improvement.

Obama is locked in a tight re-election battle with Republican challenger Mitt Romney in which the struggling economy is the main issue. Obama has proposed letting Bush-era tax cuts expire for the wealthy, but Romney has said tax increases would damage the economy.

The payroll tax first implemented in 2011 at Obama's request was designed to help provide people an economic cushion, but critics have questioned relying on a measure that cuts funds from the Social Security retirement system.

The Post said the Obama administration wanted to match the benefits of the payroll tax reduction without tapping into Social Security revenues.

Regardless of the election outcome, the country faces a "fiscal cliff" of automatic across-the-board spending cuts and tax increases for the end of the year unless the White House and Congress can strike a deficit reduction deal.

Obama told the Des Monies Register on Tuesday that he was confident that if re-elected, he would secure within six months a deficit-reduction deal with Republicans equivalent to the "grand bargain" he failed to achieve last year.

The goal of such a deal would be to achieve $4 trillion in deficit reduction over 10 years.

Home International
United States of America

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus

Baabda 2014
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Pictures of the day
A selection of images from around the world- Wednesday, April 23, 2014
View all view all
Rami G. Khouri
Rami G. Khouri
Israel shows Zionism’s true colors
Michael Young
Michael Young
For Christians, blessed are the dividers
David Ignatius
David Ignatius
An Iran deal is close, but we’re not there yet
View all view all
Click to View Articles
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS