[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[Extensions of Remarks]
[Page 6767]
[From the U.S. Government Publishing Office, www.gpo.gov]




     THE INTRODUCTION OF THE WORKING AMERICANS WAGE RESTORATION ACT

                                 ______
                                 

                     HON. GEORGE R. NETHERCUTT, JR.

                             of washington

                    in the house of representatives

                        Thursday, April 15, 1999

  Mr. NETHERCUTT. Mr. Speaker, this week, most Americans will pay their 
federal income tax. In total, individuals will spend about 1.7 billion 
hours to try to comply with the tax code. Businesses will spend 3.4 
billion hours. That is equivalent to a ``staff'' of 3 million people 
working full-time, year-round, just on taxes. For Washington State 
residents, the average total tax burden will rise from $10,307 in 1997 
to $10,634, making Washington the state with the tenth highest per 
capita tax burden.
  Our colleague in the Senate, Senator John Ashcroft, and I believe 
this is too much, that working Americans know better how to spend their 
money than the Government does. So I am pleased today, with Senator 
Ashcroft to introduce the Working Americans Wage Restoration Act.
  The bill will eliminate the double taxation on the employee's share 
of the Social Security payroll tax. It would not affect the Social 
Security Trust Fund in any way.
  Over the last 50 years, the Social Security employer-employee payroll 
tax has grown from 2% to 15%. As a result, almost three-quarters of all 
families now pay more in total Social Security payroll taxes than they 
pay in income taxes. These payroll taxes are inherently unfair because 
workers are taxed twice on the same income. Americans are taxed first 
as a portion of their gross income for federal income tax purposes and 
a second time for their contribution to the Social Security Trust Fund.
  By allowing workers to deduct their share of Social Security 
contributions from their federal taxes, the Working Americans Wage 
Restoration Act will eliminate this double taxation and allow the 
workers who generated the economic growth to keep more of the money 
they earn.
  Currently, businesses and employers are permitted to deduct their 
share of the payroll tax as a business expense, but workers are not. 
Individuals should have this same opportunity. My legislation would 
provide the same benefit to individuals that businesses already enjoy.
  I urge my colleagues to support the Working Americans Wage 
Restoration Act.

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