[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3746 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3746

       To provide a temporary employee payroll tax cut for 2012.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 20, 2011

 Mr. Loebsack introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
       To provide a temporary employee payroll tax cut for 2012.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Cuts for the Middle Class Act''.

SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX CUT.

    (a) In General.--Notwithstanding any other provision of law--
            (1) with respect to any taxable year which begins in the 
        payroll tax holiday period, the rate of tax under section 
        1401(a) of the Internal Revenue Code of 1986 shall be 10.4 
        percent, and
            (2) with respect to remuneration received during the 
        payroll tax holiday period, the rate of tax under 3101(a) of 
        such Code shall be 4.2 percent (including for purposes of 
        determining the applicable percentage under sections 3201(a) 
        and 3211(a)(1) of such Code).
    (b) Coordination With Deductions for Employment Taxes.--
            (1) Deduction in computing net earnings from self-
        employment.--For purposes of applying section 1402(a)(12) of 
        the Internal Revenue Code of 1986, the rate of tax imposed by 
        subsection 1401(a) of such Code shall be determined without 
        regard to the reduction in such rate under this section.
            (2) Individual deduction.--In the case of the taxes imposed 
        by section 1401 of such Code for any taxable year which begins 
        in the payroll tax holiday period, the deduction under section 
        164(f) with respect to such taxes shall be equal to the sum 
        of--
                    (A) 59.6 percent of the portion of such taxes 
                attributable to the tax imposed by section 1401(a) 
                (determined after the application of this section), 
                plus
                    (B) one-half of the portion of such taxes 
                attributable to the tax imposed by section 1401(b).
    (c) Payroll Tax Holiday Period.--The term ``payroll tax holiday 
period'' means calendar year 2012.
    (d) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax holiday period in any manner the 
Secretary deems appropriate.
    (e) Transfers of Funds.--
            (1) Transfers to federal old-age and survivors insurance 
        trust 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 
        application 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.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of subsection (a)(2). 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 Account had such amendments not been enacted.
            (3) Coordination with other federal laws.--For purposes of 
        applying any provision of Federal law other than the provisions 
        of the Internal Revenue Code of 1986, the rate of tax in effect 
        under section 3101(a) of such Code shall be determined without 
        regard to the reduction in such rate under this section.
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