US News

Pols prep for next tax fight

WASHINGTON — Lawmakers are digging in for a fight over extending President Obama’s payroll-tax holiday that is set to expire in January, taking a $1,000-a-year bite out of middle-class paychecks.

Democratic leaders said they want to raise taxes on the rich to pay for keeping the payroll-tax rate at 4.2 percent, instead of the usual 6.2 percent.

Arizona Sen. Jon Kyl, the No. 2 Republican in the Senate, said that approach will meet stiff opposition because it taxes job creators to give a tax break that does nothing for job growth.

“The payroll-tax holiday has not stimulated job creation. We do not think that is a great way to do it,” Kyl said on “Fox News Sunday.”

He also objected to lowering the payroll taxes, which fund Social Security, because it only hastens the insolvency of the program.

“You can’t keep extending the payroll-tax holiday and have a secure Social Security,” he said.

But Sen. Charles Schumer (D-NY) vowed that his party would keep pushing the measure.

“If it doesn’t pass once, we are going to put it on the floor again and again with some other ideas for paying for it if this one fails,” Schumer said on NBC’s “Meet the Press.”

Obama will travel Wednesday to Scranton, Pa., to stump for extending the holiday.

smiller@nypost.com