Obama pushes payroll tax cut extension in New Hampshire

US President Barack Obama is in the political battleground state of New Hampshire to challenge Congress to extend an expiring payroll tax cut.


His trip comes a day after the failure of a deficit-cutting effort by a bipartisan congressional committee.


Democrats had hoped to include the tax cut extension and other economy-boosting measures into an agreement by the so-called super-committee.


Republicans are not wholly against the proposal, but may attach conditions.


Speaking from a high school in Manchester, New Hampshire, the president will argue that failure to extend the tax breaks would hurt middle-class families.


Under his latest jobs plan the president would cut by a further percentage point a payroll tax break that has reduced workers' contributions to Social Security by 2%.


The measure helped 121 million families save $934 (£600) last year, the Tax Policy Center says.


"If we don't act, taxes will go up for every single American, starting next year. And I'm not about to let that happen," President Obama said on Monday.


It has been nearly two years since he visited New Hampshire, a presidential swing state he won in 2008.


In January, it holds one of the first state-by-state nominating contests to pick the Republican candidate who will challenge Mr Obama for the White House in a year's time.


During Tuesday's visit, President Obama will also argue for an extension of benefits for the long-term unemployed.


Introduced as part of the 2008 stimulus package, it was renewed last year but is also due to expire at the end of this year unless Congress acts.


Analysts say that failing to preserve the measures would be a drag on the fragile US economy, already labouring under an unemployment rate of 9%.


Official figures released on Tuesday found the US economy had grown in the last quarter at a slower pace than previously estimated.


Republican members of Congress have not ruled out an extension to the payroll tax.


Party members sent the White House a letter in September stating the proposal was a potential area of common ground in the president's $447bn jobs bill.


But Republicans may demand the $248bn cost of the measure be offset elsewhere.


There is doubt over whether Congress will be able to make a deal, given the super-committee's failure after weeks of talks to agree how to cut government spending.


It means automatic across-the-board spending cuts are due to come into effect in 2013.


However, some Republican lawmakers have already said they will work to avoid the cuts to the Pentagon's budget.


Representative Buck McKeon Read more