Nov 30 2011
The Republican Proposal Extends Current Payroll Tax Relief, Reduces The Deficit By $111 Billion And Trims The Size Of The Federal Government
Prevents A Tax Increase, Protects Social Security:
Provides a one year extension of the temporary Social Security tax holiday that passed in 2010, protecting all individuals from tax increases, including the job creators targeted by the Democrat plan. Ensures that the Social Security Trust Fund is not harmed by this temporary tax holiday.
Reduces The Deficit, Trims The Size Of Government:
Reduces the deficit by $111 Billion. Uses The Simpson-Bowles model to freeze federal civilian salaries and reduce the size of the civilian federal work force.
- Simpson-Bowles Plan: “Impose a three-year pay freeze on federal workers and Defense Department civilians. Out of duty and patriotism, hardworking federal employees provide a great service to this country. But in a time of budget shortfalls, all levels of government must trim back.” (Simpson-Bowles Commission, “The Moment Of Truth,” P.26, 12/10)
- Simpson-Bowles Plan: “Over time, the Commission recommends cutting the government workforce – including civilian defense – by 10 percent, or by 200,000.” (Simpson-Bowles Commission, “The Moment Of Truth,” P.26, 12/10)
- President Obama: “The hard truth is that getting this deficit under control is going to require broad sacrifice. And that sacrifice must be shared by the employees of the federal government.” (President Obama, Remarks By The President On The Federal Employee Pay Freeze, 11/29/10)
- CBO Table: “Budgetary Effects for… the Temporary Tax Holiday and Government Reduction Act” $111.5 Billion. (“Budgetary Effects For A Senate Proposal, The Temporary Tax Holiday And Government Reduction Act,” Congressional Budget Office, 11/30/11)
Means Tests Government Benefits For Millionaires & Billionaires:
Adds a new means test to government health benefits, unemployment compensation and food stamps so that millionaires aren’t receiving federal benefits that are better targeted elsewhere.
- President Obama: “I’ve said that means testing on Medicare… would be appropriate.” (President Obama, Press Conference, 7/15/11)
- Sen. Dianne Feinstein (D-CA): “If you don't need them, if you are millionaire, why should you have these benefits?” (Sen. Feinstein, Floor Remarks, 1/25/10)
- Jack Welch, Former GE Chairman: “I shouldn’t be getting Medicare benefits at the level I’m getting.” (Jack Welch, CNBC, 10/7/11)
Gives Millionaires & Billionaires Another Opportunity To Help With The Deficit:
Includes Sen. John Thune’s ‘Buffett Rule Act of 2011,’ which makes it easy for millionaires like Warren Buffett who want to pay more taxes to reduce the federal deficit with a voluntary contribution via their tax returns.
- Warren Buffett: “I think that people at the high end, people like myself, should be paying a lot more...” (ABC News’ “This Week,” 11/21/10)
No Tax Hike On Job Creators:
Does not include a single dollar of new taxes on job creators.
- President Obama: “The last thing you want to do is to raise taxes in the middle of a recession because that would just suck up -- take more demand out of the economy and put businesses in a further hole.” (NBC, 8/5/09)
- President Obama: “You don't raise taxes in a recession.” (NBC, 8/5/09)
SENATE REPUBLICAN COMMUNICATIONS CENTER