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    THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY & MEDICARE
    ~ Trusted ~ Independent ~ Effective ~

    December 22, 2011

    NEWS RELEASE

    Payroll Tax "Holiday" is Anything But

    Congressional Deal Will Divert Billions More from Social Security

    "Providing a middle class tax cut to help spur the economy is the right policy but cutting the contributions that fund Social Security is the wrong method. When Congress approved cutting $112 billion in payroll taxes from Social Security last December, it promised the American people the move would be a one year temporary stimulus for our floundering economy.  However, as predicted, here we are one year later and those promises have been forgotten. Restoring Social Security's contribution levels to their historic levels is now being misleadingly described as a tax increase.  

    Diverting billions in Social Security contributions for a so-called 'tax holiday' may sound like a good deal for workers now but it's bad business for the program that a majority of middle-class seniors will rely upon in the future.  There are more effective forms of stimulus which Congress should revive, including the 'Making Work Pay' tax credit, rather than continuing to target Social Security, which did not cause this economic mess and should not be used as a cash-cow. Adoption of a 2 month extension also means Congress will revisit this issue yet again in the New Year and it's clear that some Members of Congress intend to push for cuts in Medicare to help pay for extending the payroll tax cut.

    Making Social Security dependent on anything other than workers' payroll contributions, which have successfully funded the program for 75 years, might be good election year politics but it is not good policy."  Max Richtman, NCPSSM President/CEO

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    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.

    Media Inquiries to:
    Pamela Causey 202-216-8378/202-236-2123
    Kim Wright 202-216-8414
    www.ncpssm.org