U.S. House of Representatives Committee on Ways and Means

09/16/2020 | News release | Distributed by Public on 09/16/2020 16:06

House Democrats’ bad plan on payroll taxes would be one of the largest tax hikes in history

House Democrats' bad plan on payroll taxes would be one of the largest tax hikes in history

September 16, 2020 - Blog

Payroll taxes are already the largest tax most workers pay, which is why Republicans have proposed temporary relief that also keeps Social Security safe. Yet for months, House Democrats have been championing a paycut for workers that takes more of their earnings.

The Social Security 2100 Act would be a huge tax hike. According to the Social Security actuary the plan from House Democrats would increase taxes on primarily on workers by over $21 trillion.

Higher payroll taxes result in a smaller paycheck in life for workers - especially those just entering the workforce. It also results in uncertainty for small businesses. Main Street cannot expand or invest if Uncle Sam is going to be knocking for more and more of their workers' pay each year.

Worst of all, the plan doesn't even make Social Security solvent for the long term. It simply buys a few extra years of time while giving Washington the green light to raise payroll taxes even further down the road.

We need to protect Social Security for current and future generations. There are ways to ensure its success without tax hikes on the backs of workers. Not once has Social Security reform happened without bipartisan support. Republican Leaders on the Ways and Means Committee have laid out principles for how to achieve this and are eager to work with Democrats toward a solution.

Former Vice President Joe Biden already has proposed a $4 trillion plan to hike taxes that nonpartisan analyses confirm would hit all workers. Sadly, Democrats in Congress are piling on to ensure smaller paychecks for workers-at a time when families need that money most.

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SUBCOMMITTEE: Social Security