Middle class Americans long for new payroll tax cut bill to bring tax extensions & job opportunities
Middle class families across United States are keeping their fingers crossed as US House Republicans introduced their version of the payroll tax cut extension bill on Friday. This bill comes just a day after President Barack Obama threatened to cut the holiday recess of the congress unless the expiring payroll tax cut bill was extended.
Democrats Version Vs Republican Version: Although most middle class workers and economic experts have expressed hope that the payroll tax cut extension bill would be enacted soon, the competing Republican and Democratic versions of payroll tax cut legislation have so far failed to reach a common walking path.
The Republican version of the bill is against levying any surcharge or surtax on income over $1 million to offset the cost of the payroll tax cut while the democrats support such a provision in their bill. The Republicans on the other hand have suggested extending the current pay freeze on federal employees and gradually increase Medicare premiums for high-income retirees. The Republican bill also speaks about reforming the unemployment insurance program by reducing the maximum number of weeks from 99 to 59 amid other changes.
Keystone XL Pipeline A Game Changer? The keystone Xl pipeline amid a few others has been one of the most controversial issues detrimental in finding a common path for both the versions. While President Obama threatened to reject any payroll tax extensions that include any extraneous provisions relating to the Keystone XL pipeline in the past, the new House Republicans bill talks of accelerating a decision from the Obama administration on the Keystone oil tar sands by blocking out rules from the Environmental Protection Agency on incinerators and boilers from taking effect.
Middle Class Tax Relief & Job Creation Act: The payroll tax cut extension bill introduced by House Republicans is officially known as the Middle Class Tax Relief & Job Creation Act. The basic aim of the bill is to extend the current payroll tax cut by another year and reducing social security and Medicare withholding taxes from 6.2 to 4.2 % to prevent any tax rise especially for the middle class. Some of the most important features of the bill include:
- Extending the current payroll tax rate for employees, which was reduced from 6.2 percent of wages to 4.2 percent, for one year.
- Ensuring that taxes will stay lower for the nearly 170 million Americans who pay payroll taxes, with the average working family saving $1,000 in 2012.
- Preventing millionaires from receiving unemployment insurance and food stamp benefits
- Prohibiting IRS payments to illegal immigrants
Job Creation Reforms: The proposed bill also provides a number of job creation and welfare reform measures. The bill proposes spending cuts in government to fully pay for extending current payroll tax relief and unemployment insurance benefits while extending 100 percent business expensing through 2012 to make it easier for employers, small and large, to invest now in new machinery and equipment, grow their businesses, and create jobs.
The GOP-led House of Representatives will be voting on the Middle Class Tax Relief & Job Creation Act next week which many hope will not only help the middle class workers but would also pave the way thousands of new job opportunities for the American citizens.