I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Cuts for the Mid5 dle Class Act’’. 

6 SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX CUT. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law— 

9 (1) with respect to any taxable year which be10 gins in the payroll tax holiday period, the rate of tax 

11 under section 1401(a) of the Internal Revenue Code 

12 of 1986 shall be 10.4 percent, and 


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1 (2) with respect to remuneration received dur2 ing the payroll tax holiday period, the rate of tax 

3 under 3101(a) of such Code shall be 4.2 percent (in4 cluding for purposes of determining the applicable 

5 percentage under sections 3201(a) and 3211(a)(1) 

6 of such Code). 

7 (b) COORDINATION WITH DEDUCTIONS FOR EM8 PLOYMENT TAXES.— 

9 (1) DEDUCTION IN COMPUTING NET EARNINGS

10 FROM SELF-EMPLOYMENT.—For purposes of apply11 ing section 1402(a)(12) of the Internal Revenue 

12 Code of 1986, the rate of tax imposed by subsection 

13 1401(a) of such Code shall be determined without 

14 regard to the reduction in such rate under this sec15 tion. 

16 (2) INDIVIDUAL DEDUCTION.—In the case of 

17 the taxes imposed by section 1401 of such Code for 

18 any taxable year which begins in the payroll tax holi19 day period, the deduction under section 164(f) with 

20 respect to such taxes shall be equal to the sum of— 

21 (A) 59.6 percent of the portion of such 

22 taxes attributable to the tax imposed by section 

23 1401(a) (determined after the application of 

24 this section), plus 


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1 (B) one-half of the portion of such taxes 

2 attributable to the tax imposed by section 

3 1401(b). 

4 (c) PAYROLL TAX HOLIDAY PERIOD.—The term 

5 ‘‘payroll tax holiday period’’ means calendar year 2012. 

6 (d) EMPLOYER NOTIFICATION.—The Secretary of 

7 the Treasury shall notify employers of the payroll tax holi8 day period in any manner the Secretary deems appro9 priate. 

10 (e) TRANSFERS OF FUNDS.— 

11 (1) TRANSFERS TO FEDERAL OLD-AGE AND

12 SURVIVORS INSURANCE TRUST FUND.—There are 

13 hereby appropriated to the Federal Old-Age and 

14 Survivors Trust Fund and the Federal Disability In15 surance Trust Fund established under section 201 

16 of the Social Security Act (42 U.S.C. 401) amounts 

17 equal to the reduction in revenues to the Treasury 

18 by reason of the application of subsection (a). 

19 Amounts appropriated by the preceding sentence 

20 shall be transferred from the general fund at such 

21 times and in such manner as to replicate to the ex22 tent possible the transfers which would have oc23 curred to such Trust Fund had such amendments 

24 not been enacted. 


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1 (2) TRANSFERS TO SOCIAL SECURITY EQUIVA2 LENT BENEFIT ACCOUNT.—There are hereby appro3 priated to the Social Security Equivalent Benefit Ac4 count established under section 15A(a) of the Rail5 road Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 

6 amounts equal to the reduction in revenues to the 

7 Treasury by reason of the application of subsection 

8 (a)(2). Amounts appropriated by the preceding sen9 tence shall be transferred from the general fund at 

10 such times and in such manner as to replicate to the 

11 extent possible the transfers which would have oc12 curred to such Account had such amendments not 

13 been enacted. 

14 (3) COORDINATION WITH OTHER FEDERAL

15 LAWS.—For purposes of applying any provision of 

16 Federal law other than the provisions of the Internal 

17 Revenue Code of 1986, the rate of tax in effect 

18 under section 3101(a) of such Code shall be deter19 mined without regard to the reduction in such rate 

20 under this section. 

Æ 


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