Tags: republican | tax | cut | senate

Senate Republicans Offer Tax-cut Renewal Plan

Wednesday, 30 Nov 2011 08:36 PM


A pay freeze for federal workers would be extended for another three years as part of a Senate Republican plan offered Wednesday to cover the cost of President Barack Obama's call to extend a popular payroll tax cut.

The Republican proposal, deemed unacceptable by Democrats who control the Senate, would also achieve savings by reducing the size of the federal workforce. Smaller savings would be gained by tightening eligibility requirements for jobless benefits, food stamps and the Medicare healthcare program for the elderly.

Senator Dean Heller proposed the funding mechanism, which was embraced by Republican leadership. Under the plan, for example, millionaires and billionaires would be forced to pay higher Medicare premiums, according to a summary. Other eligibility changes also are targeted at the wealthy, who generally do not qualify for these social safety net programs.

"This bill will provide some relief to struggling workers who continue to need it but without raising taxes on job creators, which is what the Democrats' proposal would do," said Senate Republican Leader Mitch McConnell.

The Republican plan would help workers by extending a payroll tax cut, but hurt those in the federal workforce by extending for another three years a two-year pay freeze approved by Congress at the request of Obama in December 2010.

Senate Democrats have an alternative proposal to renew and expand the payroll tax cut and cover the cost with a new tax on annual income of more than $1 million.

Republicans oppose any additional tax on the wealthy, saying it would undermine job creation and the fragile U.S. economy.

Until earlier this week, Republicans had been lukewarm, at best, to extending the payroll tax cut. But they have come under political pressure to do so in advance of next year's presidential and congressional elections.

Without congressional action by Dec. 31, the payroll tax that workers pay would revert to 6.2 percent, up from the current, temporary 4.2 percent tax.

On average, it would cost American families about $1,000.

Adam Jentleson, a spokesman for Senate Majority Leader Harry Reid, said the Democratic plan "would put more money in the pockets of middle-class families and create more jobs."

Jentleson added that now that Republicans "have seen the light" and are backing a payroll tax cut extension, "We look forward to working with them to negotiate a consensus solution."

© 2015 Thomson/Reuters. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Army Officer: Bergdahl Charged With Desertion, WH Wants It Kept Quiet

Monday, 26 Jan 2015 23:06 PM

Army Sgt. Bowe Bergdahl has been charged with desertion, but the White House is trying to keep the story under wraps, a  . . .

Snowstorm Threatens to Paralyze Northeast for Days

Monday, 26 Jan 2015 18:12 PM

Tens of millions of people along the Philadelphia-to-Boston corridor rushed to get home and settle in Monday as a fearso . . .

Sen. Ayotte: Trading Terrorists for Citizens Sets Bad Precedent

Monday, 26 Jan 2015 22:23 PM

Sen. Kelly Ayotte told Fox News she is glad Rep. Duncan Hunter is asking questions about the timing of the release of an . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved