[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2957 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 2957

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


_______________________________________________________________________


                   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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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:
   2010................................  3.1 percent
  2010 or thereafter...................  6.2 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:
   2010................................  3.1 percent
  2010 or thereafter...................  6.2 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, 2009.....................  January 1, 2011..............  6.2
December 31, 2010.....................  .............................  12.40''.
----------------------------------------------------------------------------------------------------------------

                    (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.
                                 <all>