Scott Brown Fulfills ‘Across-the-Board Tax Cut’ Pledge
Sen. Scott Brown’s (R-Mass.) first ad — which drew the attention of everyone but Martha Coakley’s sleepy campaign staff — started with President John F. Kennedy talking about tax cuts and faded into the handsome Republican finishing the spiel. Today he’s making good on the rhetoric by introducing an “Immediate Tax Relief for America’s Workers” amendment, which has no chance of passing but neatly makes the supply-sider’s argument against the stimulus — it would take $80 billion of unspent money and turn it into tax cuts.
The details, from Brown’s office:
Senator Scott Brown’s ” amendment would cut payroll taxes and provide immediate relief to virtually every worker in America today—nearly 130 million people from Massachusetts to California.
- As Americans are still suffering more than one year after the stimulus plan, Senator Brown’s amendment would return unused, unobligated “stimulus” funds (currently estimated to be over $80 billion dollars) in the form of an across-the-board payroll tax cut for American’s workers for a period of six months.
- Workers and the self-employed would see their payroll taxes lowered immediately after the plan takes effect – providing them with an estimated average of almost $100 per month, or more than $500 over the six month plan. Working couples could receive a tax cut worth more than $1,000 under Senator Brown’s plan.
- Families could immediately use their returned tax dollars to provide for their families and put back into the struggling economy to spur job creation
- The amendment would not increase the deficit one penny. The payroll tax cut would be paid for with the roughly $80 billion of unused (in budget terms, “unobligated”) funds from the American Recovery and Reinvestment Act of 2009. Americans need immediate relief—not more government bureaucracy years from now.
- Senator Brown shares the belief of leaders of both parties from John F. Kennedy to Ronald Reagan, that the best way to revive our economy and spur job creation is by returning money directly to the American people.
- As this government continues its binge spending of taxpayer money, Senator Brown will continue to do everything possible to make sure hardworking employees and entrepreneurs get it back.
**How “Immediate Tax Relief for America’s Workers” Amendment Works: **
- The amendment compels the Secretary of the Treasury (through the Internal Revenue Service) to promptly issue guidance on changes to the payroll withholding tables.
- Employers’ payroll contributions are not affected by this amendment. As such, employers and self-employed shall continue to report wages earned to Social Security Administration and workers’ future benefits are not diminished by this amendment in any manner.
- If enacted, all unobligated funding for the American Recovery and Reinvestment Act (ARRA) would be rescinded.
- The Federal Old-Age and Survivors Insurance Trust Fund would receive an appropriation from the general fund equal to the reduction in revenue by reason of this amendment in a manner consistent with the timing of the payroll tax cut.
- The amendment is fully offset. The revenue loss from the payroll tax reduction is paid for by the savings from the rescinded spending in ARRA.
The $282 billion of tax rebates and cuts in the stimulus package must be the least-well-remembered tax relief in American history.
- The payroll tax reduction would be effective 60 days after enactment of this amendment.