Senate Democrats' new Payroll tax cut plan keeps surtax on annual income exceeding $1 million

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. . .no backing down from Democrats on demanding the wealthy pay their fair share of taxes to support the middle-income cuts.

Senate Democrats Offer Smaller Surcharge in Payroll Tax Cut Plan

Dec. 6 (Bloomberg) -- Democrats in the U.S. Senate will seek another vote on a payroll tax cut for workers this week in an attempt to pressure more Republicans to support an extension into 2012.

Legislation proposed by Senate Democrats yesterday would cut the payroll tax paid by employees to 3.1 percent next year from the current 4.2 percent. The $185 billion cost would be offset by a new 1.9 percent surtax on annual income exceeding $1 million and by raising the fees charged to lenders by government-owned mortgage giants Fannie Mae and Freddie Mac. The proposal was sponsored by Senator Robert Casey, a Pennsylvania Democrat who is facing a tough race for re-election next year.

The measure nods at some of the concerns Republicans have raised about how a payroll tax cut extension would be offset. The plan reduced the millionaire surtax rate from 3.25 percent to 1.9 percent and incorporated ideas that were raised during negotiations of the bipartisan congressional supercommittee. The proposal also trims the package's cost by eliminating a proposed payroll tax cut for employers . . .


read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/05/bloomberg_articlesLVR7J41A74FP.DTL

[JustAnotherGen]

1. Dear Republicans in the Senate

This is a rock. This is a hard place. You are now in between it.

Not familiar with Bob Casey in depth/detail as to his legislative record/personal conduct/campaign contributors - but GOOD on him.

If you are a Republican in the Senate . . . do you want to be on record for having thrown ALL the people under the bus who do NOT make $1 Million per year? Or on the record for throwing people under the bus that DO make $1 Million per year (tiny percentage of Americans). Choose your master well . . .

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2. Casey is a mess

self-proclaimed conservative Democrat . . . mixed record in office:

Progressive Rating: 62/100
Conservative Rating: 18/100
http://thatsmycongress.com/senate/senatorRobertCaseyPA111.html

His sponsorship of a payroll tax cut within the frame set by the WH and with these funding elements, is what it might take, though, to pull republicans all the way into the President's tax trap. It's some dizzying politics to see Casey allowed to shepherd this through, with his close re-election battle upcoming/ongoing.

[JustAnotherGen]

3. Amen!

And it is a trap by the President. ;-)