INTERACTIVE MAP: Washington Families and the Payroll Tax Cut

(Washington, D.C.) – Today, Senator Murray (D-WA) launched an interactive map on her website to highlight the potential county by county impact on Washington families if Congress fails to extend the payroll tax cut into next year. The Senate is expected to vote this week on the Middle Class Tax Cut Act of 2011 (S. 1917), a bill that would extend a tax cut for approximately 160 million workers and middle class families.

“This legislation will save an average middle class family in Washington over $1,700 and would provide broad tax relief to over 150,000 small businesses in the state,” said Senator Murray. “I call on my colleagues to support this legislation and extend tax cuts for the people who need them most.”

The median Washington family has a yearly income of $56,479. Under the current 2% payroll tax cut, set to expire at the end of the year, that family is saving approximately $1,130 per year on their tax bill. If the current tax cut expires, their yearly tax bill will go up by that amount. If the payroll tax cut is expanded to 3.1%, as proposed in this bill, that family’s savings will increase to $1,751 per year. 

Key provisions of the Middle Class Tax Cut Act include:

• Provides Tax Cut to 160 Million Workers. The bill cuts in half the Social Security payroll tax paid by employees and the self-employed on their wages and salaries for 2012. 

• Cuts the Payroll Tax in Half for 98% of U.S. Businesses. The Senate bill cuts in half the Social Security payroll tax paid by employers on the first $5 million of taxable payroll for 2012.

• Gives an Added Incentive for Businesses to Hire New Workers. The bill completely eliminates the Social Security payroll tax paid by employers on the first $12.5 million of an employer’s increased taxable payroll for the 4th quarter of 2011 and $50 million in increased payroll for 2012.
  

• Asks Millionaires to Pay Their Fair Share Without Adding a Dime to the Deficit. In order to create or save hundreds of thousands of jobs and prevent a tax hike that would impact 160 million American workers, the Senate bill imposes a 3.25% surtax on modified adjusted gross income in excess of $1 million for both single filers and married couples filing jointly.

• Protects Social Security. The legislation would not affect the Social Security Trust Fund by one penny, because it requires that the Social Security Trust Fund be made whole through transfers from the General Fund.

View the interactive map