U.S. Senate Majority Leader Harry Reid will abandon a plan tolower the payroll tax for employers and focus on continuing andexpanding the current tax cut for workers, according to aDemocratic aide.
Reid will propose reducing the payroll tax paid by employees to3.1 percent for 2012 from the current 4.2 percent, said the aide,who wasn't authorized to discuss the plan publicly. Eliminating theprovision to reduce the payroll tax for employers will reduce thepackage's cost to about $180 billion over 10 years from $265billion, the aide said.
Democrats plan to offset the proposal by imposing a surtax onannual income exceeding $1 million. The aide said the surtax wouldlikely be less than 2 percent, lower than the 3.25 percent levyDemocrats had sought.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
