II
111th CONGRESS
2d Session
S. 2957
IN THE SENATE OF THE UNITED STATES
January 26, 2010
Mr. LeMieux 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.
Temporary reduction in payroll taxes
In general
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: |
| 2010 | 3.1 percent |
| 2010 or thereafter | 6.2 percent |
.
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: |
| 2010 | 3.1 percent |
| 2010 or thereafter | 6.2 percent |
.
Self-employment taxes
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, 2009 | January 1, 2011 | 6.2 |
| December 31, 2010 | 12.40 |
.
Conforming amendments
Section 164(f) of such Code is amended adding at the end the following new paragraph:
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.
.
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
.
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.
