Rigell Supports and House Passes Tax Break for Working Families and Small Businesses

Press Release

Today Representative Scott Rigell (VA-2) voted for, and the House passed 293-132, an extension of the payroll tax break through 2012, providing tax relief for small business owners and middle-class families. The tax holiday would extend the current payroll tax rate reduction, which lowers the standard Social Security payroll tax rate by two percentage points for employees to 4.2%, and 10.4% for the self-employed. It would make no change to the rate employers pay (6.2%). Prior to 2011, employees and employers each paid 6.2% of covered earnings (for a total of 12.4%) up to an annual income limit.

"This bipartisan agreement is important for the hardworking American taxpayer struggling to make every dollar count," Rigell said. "It extends unemployment insurance, providing relief for the 12.8 million Americans who are unemployed -- while implementing provisions that prevent abuse of the system. Finally, this agreement protects our seniors on Medicare by ensuring the doctors who treat them are adequately paid for their services.

"Like many things in Washington, this agreement isn't perfect. But it reflects where we, as Republicans and Democrats, can find the common ground that Americans are desperate for us to find."

Highlights of the payroll tax holiday agreement include:

Payroll Tax Holiday Extended Through 2012
* The payroll tax holiday is extended through December 31, 2012.

* The amount of revenue that is foregone to the Social Security Trust Fund as a result of the payroll tax reduction is fully replaced with savings from the Treasury's General Fund.

Reforms & Extends the Unemployment Program
* Overturns a 1960s-era Department of Labor ban on States' screening and testing unemployment insurance applicants for illegal drugs. Specifically, the agreement allows every state to drug screen and test anyone who (1) lost their job because they failed or refused an employer drug test, or (2) is seeking a job that generally requires a drug test.

No More Welfare Benefits At Certain ATMs
* The legislation ensures that welfare funds cannot be accessed at ATMs in certain night clubs, liquor stores, and casinos.

Protects Seniors & Reforms Certain Medicare Programs
* The agreement averts a 27.4% cut to physician payment rates and ensures seniors and the disabled have continued access to the physicians serving our Medicare beneficiaries.

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