Huffpost Politics
Jennifer Bendery Headshot

Nancy Pelosi: Payroll Tax Cut Should Expire

Posted: Updated:
House Minority Leader Nancy Pelosi (D-Calif.) answers questions during her weekly news conference in the U.S. Capitol on Sept. 20. (Photo by Win McNamee/Getty Images). | Getty Images

WASHINGTON -- House Minority Leader Nancy Pelosi (D-Calif.) says Congress should let the payroll tax cut expire at the end of the year and instead work toward comprehensive tax reform.

"I would hope that we would not extend it," Pelosi said of the tax cut, during a Friday sit-down with reporters.

The whole point of extending the payroll tax cut was to only do it for a year or two to ensure economic stability, she said. Now that things have stabilized, she continued, it's time to get moving on bigger changes.

"Let's deal with the budget issues. Let's put the tax code on the table, simplify, make more fair and close a lot of the special interest loopholes that are in there," Pelosi said. "I would not be among those advocating" to extend the cut, she said.

The Democratic leader added that she "could be convinced" to support another payroll tax cut extension of if it were part of a broader economic package, but otherwise she said the rates should revert to where they were before.

Last year, President Barack Obama made a 2 percent cut to the 6.2 percent Social Security payroll tax. If the tax cut expires on Dec. 31, as expected, it would mean a $125 billion hit to the economy next year alone.

Also on HuffPost:

U.S. State Capitol Buildings
Share this
Current Slide

Suggest a correction

Around the Web

Pelosi: Payroll Tax Cut Deal Will 'Boost' Economy | PBS NewsHour

Payroll tax cut in danger: Would Nancy Pelosi have gotten it passed ...

Pelosi Puts The Kibosh On GOP Payroll Tax Cut Strategy | TPMDC

Nancy Pelosi's misfire on job and tax-cut claims - The Washington Post

Nancy Pelosi Letter to Speaker John Boehner | The Page by Mark ...

Payroll tax cut must pass before holidays, Pelosi says - 2chambers ...

Pelosi says she opposes extending payroll tax cut, says time to turn to ...

Pelosi Is Working as Boehner's Whip

The Cliff the Keynesians Built

House Democrats pushing hard from the left on budget as 'fiscal cliff' nears