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Blog: Extending the Payroll Tax Reduction


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Last week the House passed a responsible bill extending the payroll tax reduction for a full year, reforming the unemployment benefits system to ensure it fulfills its appropriate purpose and protecting Medicare. The House bill passed by a bi-partisan vote and was paid for in a responsible, bi-partisan way. Underscoring this fact is that 90 percent of the pay-fors are ideas that have been put forth by the President himself, and two of those which haven't been proposed by the President are preventing millionaires from receiving unemployment benefits and food stamps, and stopping illegal immigrants from receiving the child tax credit. Over the past week, multiple members from both sides of the aisle have agreed on the importance of passing a one year extension -- including Senator Manchin from West Virginia, our own Senator DeMint, Minority Leader Pelosi, Speaker Boehner and more. When we have these levels of bi-partisan support, it is imperative that we act immediately.

Unfortunately, the Senate sent back to the House an amendment that stripped our bill down to an unrecognizable document. Instead of providing our job creators with the flexibility and certainty that comes from a full year extension of the payroll tax, we are now looking at a two month extension. Families and job creators need certainty, and this is anything but. Apparently the Senate has lost their sense of responsibility to the hardworking men and women across our country, and instead has decided to leave Washington with no action on this very-important business that harms our economy and job creators.

And yet, my friends across the aisle will try and assert that it is House Republicans who are against the middle class. While House Republicans are fighting to responsibly extend tax cuts, we are also fighting against years of Democrats raising taxes on the middle class.

I think of the tax on Innovator Drug Companies, which will cost $22.2 billion and be passed on to the middle class.

I think about the tax on health insurers - $60 billion -- that will be passed on to the middle class.

I think about the tax on middle class health plans -- another $32 billion dollars.

I think about the surtax on investment income - $123 billion passed on to the middle class.

When I think about a new 3.8 percent investment surtax on certain groups, that's a tax on the middle class.

I think about the hike in Medicare payroll tax - $86 billon passed on to the middle class.

The tax on medical devices - $20 billion on the backs of the middle class.
It is clear that the rhetoric coming from the left and from the Senate is simply out of touch with reality. Underscoring this fact, a letter released yesterday by the policy-neutral National Payroll Reporting Consortium regarding a two-month payroll tax extension stated that for many office payroll systems, it will in fact take 90 days, or THREE months, to implement the new payroll tax deduction. I can do that math, and it doesn't add up. This town's games have now put 160 million Americans in the position of bringing less money home to their families. This is why we have lost the trust of the American people, and why we must work harder than ever to earn it back.


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