Boswell Briefing: Extending the Payroll Tax Cut

Statement

Dear Fellow Iowan,

I understand our folks are hurting, and that's why Congress needs to act now to make sure the existing payroll tax cut doesn't expire at the end of the year. If the majority party continues to block a vote on the Middle Class Tax Cut Act of 2011, virtually every American worker will see their taxes go up at the end of the month -- by $1,000 for the typical family.

With people trying to meet their mortgage payment and other monthly bills -- as well as their holiday season expenses -- now is not the time for political wrangling and a tax increase. This is important legislation that economists agree will create hundreds of thousands of jobs.

Specifically, the Middle Class Tax Cut Act of 2011 would:

* Provide a Tax Cut to 160 Million Workers by cutting the Social Security payroll taxes paid by employees and the self-employed on their wages and salary from 6.2 percent to 3.1 percent. Approximately 160 million workers would benefit from this tax cut, with the average Iowa family seeing $1,500 in additional take-home pay.

* Slash the Payroll Tax for 98 percent of U.S. Businesses by cutting the employer-side Social Security payroll taxes from 6.2 percent to 3.1 percent for the first $5 million of payroll. This would benefit all businesses, but 98 percent of businesses would see their portion of the Social Security payroll tax cut in half. More than 60,000 small businesses in Iowa would stand to benefit.

* Provide an Incentive for Businesses to Hire New Workers by eliminating the Social Security payroll tax paid by employers on the first $12.5 million of an employer's increased taxable payroll for the 4th quarter of 2011 and $50 million in increased payroll for 2012.

* Ask Millionaires to Pay Their Fair Share without Adding a Dime to the Deficit to create or save hundreds of thousands of jobs and prevent a tax hike for workers.

* Protects Social Security by requiring that the Social Security Trust Fund be made whole through transfers from the General Fund.

The American people are tired of the excuses, the bickering and of the very wealthy not paying their fair share. When millions are losing their jobs, homes, health care and education is increasingly unaffordable, the last thing we should be doing is increasing taxes on America's working class.

Many Republicans even agree that the payroll tax cuts should continue. Nearly 60% of Americans, including 58 percent of Republicans, support the payroll tax cut to spur economic growth. This legislation is just pure common sense.

I will continue to urge my fellow members of Congress to extend the payroll tax cut for hardworking Americans.

Sincerely,

Leonard L. Boswell
Member of Congres

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