Obama makes case for extending payroll tax cuts

December 5, 2011 - 2:36 PM

WASHINGTON (AP) — President Barack Obama says Congress needs to extend a payroll tax cut, saying the economic recovery is "still fragile" and middle class families need the money.

The president is urging Republicans to "keep your word to the American people" on not raising taxes.

Obama has been seeking an extension and expansion to the payroll tax cut that will expire at the end of the year. The White House says taxes on the average family would increase by $1,000 if the cuts are not extended.

Some Republicans in Congress support the extension but the parties have been split on how to pay for it.

Obama also says for Congress to end its work this year without extending unemployment insurance would be a "terrible mistake."