U.S. Senator Scott Brown (R-MA) today introduced the "Immediate Tax Relief for America's Workers" amendment, his first legislative measure that would immediately reduce payroll taxes for 130 million workers across the nation, including more than 3 million in Massachusetts.
"The best way to revive our economy and spur job creation is by returning money directly to the American people so they can save and put money back into the economy," Senator Brown said. "More than one year after the failed stimulus package, families are still hurting and their hard earned tax dollars are sitting unused in a stimulus slush fund in Washington. Workers need relief right now, and as long as this government continues its binge spending of taxpayer money, I will continue to do everything possible to make sure hardworking employees and entrepreneurs get it back."
Scott Brown's plan, if enacted, would immediately cut payroll taxes within 60 days and provide direct relief to employees and self-employed workers across the board. Workers could see an average of almost $100 per month, more than $500 over a six month period.
Scott Brown's amendment would not increase the deficit one penny. The payroll tax cut would be paid for by rescinding unobligated stimulus funding.
Background on Scott Brown's "Immediate Tax Relief for America's Workers" Plan:
* The amendment compels the Secretary of the Treasury (through the Internal Revenue Service) to promptly issue guidance on changes to the payroll withholding tables.
* Employers' payroll contributions are not affected by this amendment. As such, employers and self-employed shall continue to report wages earned to Social Security Administration and workers' future benefits are not diminished by this amendment in any manner.
* If enacted, all unobligated funding for the American Recovery and Reinvestment Act (ARRA) would be rescinded.
* The Federal Old-Age and Survivors Insurance Trust Fund would receive an appropriation from the general fund equal to the reduction in revenue by reason of this amendment in a manner consistent with the timing of the payroll tax cut.
* The amendment is fully offset. The revenue loss from the payroll tax reduction is paid for by the savings from the rescinded spending in ARRA.
* The payroll tax reduction would be effective 60 days after enactment of this amendment.