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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Cuts for the Mid-
dle Class Act’’. 
SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX CUT. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law— 
(1) with respect to any taxable year which be-
gins in the payroll tax holiday period, the rate of tax 
under section 1401(a) of the Internal Revenue Code 
of 1986 shall be 10.4 percent, and 
VerDate Mar 15 2010 
00:01 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3746.IH
H3746
jbell on DSK7SPTVN1PROD with BILLS
(2) with respect to remuneration received dur-
ing the payroll tax holiday period, the rate of tax 
under 3101(a) of such Code shall be 4.2 percent (in-
cluding for purposes of determining the applicable 
percentage under sections 3201(a) and 3211(a)(1) 
of such Code). 
(b) COORDINATION WITH DEDUCTIONS
FOR EM-
PLOYMENT TAXES.— 
(1) DEDUCTION IN COMPUTING NET EARNINGS 
FROM SELF-EMPLOYMENT.—For purposes of apply-
ing section 1402(a)(12) of the Internal Revenue 
Code of 1986, the rate of tax imposed by subsection 
1401(a) of such Code shall be determined without 
regard to the reduction in such rate under this sec-
tion. 
(2) INDIVIDUAL DEDUCTION.—In the case of 
the taxes imposed by section 1401 of such Code for 
any taxable year which begins in the payroll tax holi-
day period, the deduction under section 164(f) with 
respect to such taxes shall be equal to the sum of— 
(A) 59.6 percent of the portion of such 
taxes attributable to the tax imposed by section 
1401(a) (determined after the application of 
this section), plus 
VerDate Mar 15 2010 
00:01 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3746.IH
H3746
jbell on DSK7SPTVN1PROD with BILLS
(B) one-half of the portion of such taxes 
attributable to the tax imposed by section 
1401(b). 
(c) PAYROLL TAX HOLIDAY PERIOD.—The term 
‘‘payroll tax holiday period’’ means calendar year 2012. 
(d) EMPLOYER NOTIFICATION.—The Secretary of 
the Treasury shall notify employers of the payroll tax holi-
day period in any manner the Secretary deems appro-
priate. 
(e) TRANSFERS OF FUNDS.— 
(1) TRANSFERS
TO
FEDERAL
OLD-AGE
AND 
SURVIVORS
INSURANCE
TRUST
FUND.—There are 
hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability In-
surance Trust Fund established under section 201 
of the Social Security Act (42 U.S.C. 401) amounts 
equal to the reduction in revenues to the Treasury 
by reason of the application of subsection (a). 
Amounts appropriated by the preceding sentence 
shall be transferred from the general fund at such 
times and in such manner as to replicate to the ex-
tent possible the transfers which would have oc-
curred to such Trust Fund had such amendments 
not been enacted. 
VerDate Mar 15 2010 
00:01 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3746.IH
H3746
jbell on DSK7SPTVN1PROD with BILLS