Obama’s Team Proposes New Payroll-Tax Holiday Plan

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Photo: Saul Loeb/AFP/Getty Images

The White House has a new plan to beat Republicans to a tax cut everyone can agree on: They'd roll back Social Security taxes to 4.2 percent from 6.2 percent (so someone making, say, $40,000 would save $800 next year). This plan would take the place of the previous Obama strategy, the $400 Making Work Pay tax cut for middle-income workers, which legislators on both sides of the aisle seem to be reluctant to extend. [WSJ]