Senate Democrats have stepped up and released a bill to extend and expand on the payroll tax cut that would otherwise expire at the end of this year.
The Middle Class Tax Cut act, S. 1917, would cut the employee and employer payroll tax to 3.1 percent, half of the 6.2 percent tax they would normally face. The bill applies this cut to the first $5 million in payroll for companies, which Senate Democrats estimate will cut payroll taxes in half for 98 percent of U.S. companies with payroll below that cap.
The bill also includes a “surtax on millionaires,” which applies a 3.25 percent tax on modified adjusted gross income over $1 million or $500,000 for a married individual filing separately. This tax would take effect in 2013.
Sen. Bob Casey Jr. (D-Pa.) is the chief sponsor of the bill, which is also co-sponsored by Senate Majority Leader Harry Reid (D-Nev.) and Sens. Sherrod Brown (D-Ohio), Robert Menendez (D-N.J.), Charles Schumer (D-N.Y.) and Debbie Stabenow (D-Mich.).
Democratic leaders said they’d look to take up the tax bill soon, but had not scheduled any votes on the bill as of Monday night.
While the Republican Tea Party (GOTP) do-nothing House has wasted an entire year with grandstanding tactics like reading the Constitution, validating that our nation’s motto is “In God We Trust”, and introducing more than 100 bills aimed at limiting abortion; the Democratic Senate has introduced a bill aimed at helping Americans during a recession, cutting taxes to those of us who need them cut, and raising taxes on those who can easily afford an increase and who’ve benefited far too long on everyone else’s backs; it doesn’t bode well for a GOTP that ran on “jobs” and which has produced zero.