Obama rallies to extend payroll tax cut for employees while GOP argue for cuts for employers

Obama rallies to extend payroll tax cut to help 46% of Americans reduce $1000 from their payroll tax this year, according to Charles Babington. Normally, employees pay 6.2% of their wages towards a tax designated for social security; employers match that amount for a total of 12.4%. The extension, expires Jan. 2012, would lower employees contribution down to 4.2% for another year. The 12- month extension will cost the government $120 billion. Some GOP argue that the economy would be better served if the tax cut went to employers.