The White House described as inaccurate a Washington Post report that it is considering a proposal for a new tax cut that could replace the expiring payroll tax cut.
"I can tell you that the report is not correct -- the administration is not considering at this time a tax cut as the way that it's described in the Post," White House spokesman Josh Earnest told reporters while traveling with Obama to New Hampshire.
Citing people familiar with the administration's thinking, the Post said the administration wants to offer a cut that could mean hundreds of dollars a year or more in workers' paychecks. The Post said that one option under consideration is to structure the reduction similarly to the "Making Working Pay" tax cuts passed in Obama's 2009 stimulus package, which gave individuals an extra $400 a year and couples up to $800. Making Work Pay was limited to individuals making income of up to $95,000 and couples earning up to $190,000.
The Post said the cut is under consideration as a cushion for the economy and could replace the temporary cut in payroll taxes, which was enacted two years ago and is set to expire at the end of this year. Some Democrats have expressed reluctance to extend the payroll tax cut another year because of payroll taxes traditionally have provided the revenue stream for Social Security. AARP, the powerful senior citizens' advocacy group, opposes a renewal of the payroll tax cut, which reduced the rate workers' pay to 4.2 percent from 6.2 percent.