The current debate about the payroll tax cut shows Nan Hayworth’s true colors – she supports tax breaks for millionaires and billionaires but opposes tax cuts for 160 million middle income American families.
If Hayworth and the Republican Congress fail to extend the existing payroll tax cut by December 31 there will be a tax increase for millions of hardworking Americans at a time when they are trying hard to get back on their feet. Without an extension, middle class families will see their taxes rise and they will have less money in their paychecks.
Here is the story: With every paycheck we all pay social security tax. Currently, you are paying 4.2% (reduced from 6.2% last year to stimulate the economy). Nan Hayworth wants to let this tax break expire in just a few weeks, back up to 6.2%, costing you real money. The Democrats are fighting not let this expire; in fact, we want to reduce your tax down to 3.1%. This will save you thousands of dollars per year.
This new Democratic plan would cut payroll taxes for 98 percent of employers and put cash in the hands of about 160 million families. American families would truly have much more money in their pockets. Couldn’t you really use a larger paycheck right now?This chart reflects the costs and savings for families with the median wage income in each county. Westchester County Orange County Dutchess County If Republicans do nothing (tax increase) $1541.00 $1361.00 $1378.00 Democrats additional tax cut for employees $848.00 $749.00 $758.00 Democrat plan (tax cut for employers/per employee. $2389.00 $2110.00 $2136.00
Furthermore, the Democratic plan would help small businesses by cutting the payroll tax businesses pay in half on the first $5 million of taxable payroll for 2012. This additional cut in payroll taxes will cover 98 percent of U.S. businesses. Also, it creates jobs by eliminating the payroll tax for small businesses hiring new workers. The proposal eliminates payroll taxes 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. And, importantly, Social Security is completely protected. The plan provides that sufficient funds be transferred from the General Fund to the Social Security Trust fund to ensure that Social Security is unaffected by this payroll tax cut.
Unfortunately, House Republicans, including my opponent, Nan Hayworth, have voted to protect tax breaks for billionaires but are blocking this middle class tax cut.
The middle class tax hike would also have severe consequences for our economy. It would slow economic growth for our already fragile economy and could cost between 400,000 to nearly 1 million American jobs. How could it not when every working family will have a new $1,000 tax bill coming right out their paycheck?
It’s time for Nan Hayworth to stop playing the game of telling voters one thing and then doing another. Ms. Hayworth, what will you vote for: to extend the tax cut for the middle class, or to once more protect the wealthy 1%?
Note: I have started a petition drive to tell Nan Hayworth to extend the payroll tax cut. You can sign it here. After you sign it please pass it along to your friends to sign as well. Thanks - Rich