Durbin Launches Interactive County-by-County Map of Savings Illinois Families Can Expect from Payroll Tax Cut Extension
[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) launched an interactive map on his website today that enables Illinois families to find out how much the Middle Class Tax Cut Act of 2011 will save them in taxes next year. The legislation will extend President Obama’s middle class tax cut—preventing a tax increase on millions of hardworking Illinoisans—and expand the cut in 2012 to put more money back in the pockets of American families. The Senate plans to vote on the measure later this week.
“Illinois families can use this new interactive map to learn how much President Obama’s middle class payroll tax cut can save them—and how much Congressional inaction will cost them,” said Senator Durbin. “Whatever our rationale politically, it makes no sense that we would impose a new payroll tax on millions of hardworking families struggling to keep their heads above water. That’s wrong, and it’s not fair. Before we leave to celebrate the holiday season with our families, let’s extend and expand this payroll tax cut to help working families and help our economy.”
Key Provisions of the Middle Class Tax Cut Act Of 2011 include:
- Provides Tax Cut to 160 Million Workers. The bill cuts in half (from 6.2% to 3.1%) the Social Security payroll tax paid by employees and the self-employed on their wages and salaries for 2012. Approximately 160 million workers will benefit from this tax cut, with the average family seeing nearly $1,500 in additional take-home pay.
- Cuts the Payroll Tax in Half for 98% of U.S. Businesses. The Senate bill cuts in half (from 6.2% to 3.1%) the Social Security payroll tax paid by employers on the first $5 million of taxable payroll for 2012. This will benefit all businesses, but 98% of businesses will see their portion of the Social Security payroll tax cut in half
- Gives an Added Incentive for Businesses to Hire New Workers. The bill completely eliminates (from 6.2% to 0%) the Social Security payroll tax paid by employers 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.
- Asks Millionaires to Pay Their Fair Share Without Adding a Dime to the Deficit. In order to create or save hundreds of thousands of jobs and prevent a tax hike that would impact 160 million American workers, the Senate bill imposes a 3.25% surtax on modified adjusted gross income in excess of $1 million for both single filers and married couples filing jointly. The surtax is effective for taxable years beginning after December 31, 2012.
- Protects Social Security. The legislation would not affect the Social Security Trust Fund by one penny, because it requires that the Social Security Trust Fund be made whole through transfers from the General Fund.
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