Middle-class Albany households would save an average of $1,686 dollars thanks to reduced payroll taxes under a Democrat-backed tax bill introduced Nov. 28, Sen. Charles Schumer announced Wednesday.
Schumer, D-NY, announced he will cosponsor the Middle-Class Tax Reduction Act of 2011, introduced by Sen. Robert Casey, Jr., D-PA. The bill would slash Social Security taxes on the first $5 million owed on an employer’s payroll. Schumer said it would also create an incentive for businesses to hire new workers because it would by eliminate that same tax on new hires during the end of 2011 and throughout 2012.
“Stretching the middle-class paycheck and giving businesses the breathing room to reinvest in their businesses and create new jobs is a no-brainer,” said Schumer.
Schumer warned that existing tax cuts are due to expire at the end of the year, and that families at all levels will see a tax hike if something isn’t done.
“We need to stop this potential tax increase dead in its tracks, and to lighten the tax load on middle-class families, making it just a bit easier for them to send their kids to a good college, pay the weekly grocery bills, afford a decent home, and make their car payments,” Schumer said.
The bill isn’t likely to attract much support from Republicans, because it makes up for the slashed payroll taxes with a tax on Americans hauling in seven-figure incomes each year. The bill would impose a 3.25 percent tax on adjusted incomes greater than $1 million.
