The House GOP plan to extend the payroll tax deduction has some tough news for federal workers. The Republican plan would extend the current two-year wage freeze for federal workers another year to 2014, The Washington Post blog the Federal Eye
The proposal appears toward the end of the 24-page plan and also includes a 1.5 percent increase in federal employee pension contributions and changes in pension rules for new hires. The Congressional Budget Office estimates that extending the pay freeze would save taxpayers more than $26 billion in the next 10 years and the retirement changes over $36 billion, the Post reported.
National Active and Retired Federal Employees Association President Joseph Beaudoin said the changes in pensions amount to a 3 percent payroll tax on federal worker salaries. Colleen Kelley, president of the National Treasury Employees Union, called the House GOP plan outrageous and said it singles out “hard-working middle-class federal employees,” the Post reported.
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