April 27, 2009

McIntyre Co-Sponsors Bill To Provide Payroll Tax Holiday for Small Businesses

Washington, D.C. - U.S. Congressman Mike McIntyre announced today that he has co-sponsored legislation to give small businesses and employees a 100% suspension of the payroll tax for six months.

Congressman McIntyre stated, “Main Street, not Wall Street, needs our help.  This common sense legislation will put many back into the hands of workers, and it will also help small businesses by giving them the opportunity re-invest in their business and help turn our economy around.”

The Reclaiming Earnings to Lift Individuals, Employers, and Families (RELIEF) Act would:
• give a tax holiday to employers and employees of businesses with less than 50 workers;
• be an incentive for workers to spend more;
• provide relief to business owners through a reduction in costs of labor; and
• promote growth of small businesses by putting more cash into the hands of owners.

Estimates put the economic benefits of a holiday on payroll taxes at about $120 per week for each of the 33 million workers who are employees of small businesses.  In addition, a recent study by professors estimated that suspending only 40% of the payroll tax could create between 2 and 4 million jobs.