II 

111TH CONGRESS 

2D SESSION S. 2957 

To amend the Internal Revenue Code of 1986 to temporarily reduce payroll 

taxes of employees and employers by one-half, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 26, 2010 

Mr. LEMIEUX introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to temporarily 

reduce payroll taxes of employees and employers by onehalf, and for other purposes. 

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

3 SECTION 1. TEMPORARY REDUCTION IN PAYROLL TAXES. 

4 (a) IN GENERAL.— 

5 (1) EMPLOYEE TAXES.—The table in section 

6 3101(a) of the Internal Revenue Code of 1986 is 

7 amended to read as follows: 

‘‘In the case of wages received during: The rate shall be: 

2010 ...................................................................... 3.1 percent 

2010 or thereafter .................................................. 6.2 percent’’. 


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•S 2957 IS

1 (2) EMPLOYER TAXES.—The table in section 

2 3111(a) of the Internal Revenue Code of 1986 is 

3 amended to read as follows: 

‘‘In the case of wages paid during: The rate shall be: 

2010 ...................................................................... 3.1 percent 

2010 or thereafter .................................................. 6.2 percent’’. 

4 (3) SELF-EMPLOYMENT TAXES.— 

5 (A) IN GENERAL.—The table in section 

6 1401(a) of the Internal Revenue Code of 1986 

7 is amended to read as follows: 

‘‘In the case of a taxable 

beginning after: And before: Percent 

December 31, 2009 ........ January 1, 2011 ............ 6.2 

December 31, 2010 ........ ........................................ 12.40’’. 

8 (B) CONFORMING AMENDMENTS.— 

9 (i) Section 164(f) of such Code is 

10 amended adding at the end the following 

11 new paragraph: 

12 ‘‘(3) SPECIAL RULE FOR 2010.—In the case of 

13 taxable years beginning after December 31, 2009, 

14 and before January 1, 2011, the deduction allowed 

15 under paragraph (1) with respect to taxes imposed 

16 by section 1401(a) shall equal to one-fourth of the 

17 taxes so paid and with respect to taxes imposed by 

18 section 1401(b) shall be equal to one-half of the 

19 taxes so paid.’’. 


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•S 2957 IS

1 (ii) Section 1402(a)(12)(B) is amend2 ed by inserting ‘‘(in the case of taxable 

3 years beginning after December 31, 2009, 

4 and before January 1, 2011, one-fourth of 

5 the rate imposed by section 1401(a) and 

6 one-half of the rate imposed by section 

7 1401(b))’’ after ‘‘year’’. 

8 (b) FUNDING FROM GENERAL FUND.—There are 

9 hereby appropriated to the Federal Old-Age and Survivors 

10 Trust Fund and the Federal Disability Insurance Trust 

11 Fund established under section 201 of the Social Security 

12 Act (42 U.S.C. 401) amounts equal to the reduction in 

13 revenues to the Treasury by reason of the amendments 

14 made by paragraphs (1), (2), and (3)(A) of subsection (a). 

15 Amounts appropriated by the preceding sentence shall be 

16 transferred from the general fund at such times and in 

17 such manner as to replicate to the extent possible the 

18 transfers which would have occurred to such Trust Fund 

19 had such amendments not been enacted. 

Æ 


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