S. 2957 (111th): A bill to amend the Internal Revenue Code of 1986 to temporarily reduce payroll taxes of employees ...

...and employers by one-half, and for other purposes.

111th Congress, 2009–2010. Text as of Jan 26, 2010 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

2d Session

S. 2957

IN THE SENATE OF THE UNITED STATES

January 26, 2010

introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to temporarily reduce payroll taxes of employees and employers by one-half, and for other purposes.

1.

Temporary reduction in payroll taxes

(a)

In general

(1)

Employee taxes

The table in section 3101(a) of the Internal Revenue Code of 1986 is amended to read as follows:

In the case of wages received during:The rate shall be:
20103.1 percent
2010 or thereafter6.2 percent

.

(2)

Employer taxes

The table in section 3111(a) of the Internal Revenue Code of 1986 is amended to read as follows:

In the case of wages paid during:The rate shall be:
20103.1 percent
2010 or thereafter6.2 percent

.

(3)

Self-employment taxes

(A)

In general

The table in section 1401(a) of the Internal Revenue Code of 1986 is amended to read as follows:

In the case of a taxable beginning after:And before:Percent
December 31, 2009January 1, 20116.2
December 31, 201012.40

.

(B)

Conforming amendments

(i)

Section 164(f) of such Code is amended adding at the end the following new paragraph:

(3)

Special rule for 2010

In the case of taxable years beginning after December 31, 2009, and before January 1, 2011, the deduction allowed under paragraph (1) with respect to taxes imposed by section 1401(a) shall equal to one-fourth of the taxes so paid and with respect to taxes imposed by section 1401(b) shall be equal to one-half of the taxes so paid.

.

(ii)

Section 1402(a)(12)(B) is amended by inserting (in the case of taxable years beginning after December 31, 2009, and before January 1, 2011, one-fourth of the rate imposed by section 1401(a) and one-half of the rate imposed by section 1401(b)) after year.

(b)

Funding from general fund

There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraphs (1), (2), and (3)(A) of subsection (a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.