(CNN) -- President Barack Obama on Wednesday challenged Republicans to "fight as hard for middle-class families as you do for those who are more fortunate," telling a Pennsylvania crowd to push Congress to extend the payroll tax cut enacted a year ago. Obama met with a family in Scranton, the birthplace of Vice President Joe Biden, then spoke at a nearby high school in what will be a battleground state in next year's presidential election. Sounding the populist themes of his re-election bid so far, Obama complained that congressional Republicans were out of touch with mainstream American support for his jobs bill that included an extension of the payroll tax cut.
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NEW: Republicans propose spending, benefit cuts to pay for payroll tax cut extension
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A Democratic proposal would tax millionaires to pay for expanding the payroll tax cut
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Republicans oppose such a surtax and offer an alternative plan
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Failure to extend the payroll tax cut will cost average families about $1,000 a year
By contrast, the @placeholder plan would continue the 4.2% payroll tax rate for a year and pay for it by imposing a three-year freeze on federal salaries and reducing the federal workforce by 10% through replacing workers when they quit or retire.
Obama's trip Wednesday was his 17th to @placeholder since taking office.
Obama won the state by a 10-point margin in 2008, but @placeholder is seen as largely in play in the 2012 contest.