ICYMI: Thompson Discusses Payroll Tax Cut Extension Debate with WJAC News

Washington, D.C. – Over the weekend, the U.S. Senate proposed a short-term two-month payroll tax cut extension that non-partisan tax experts call “unworkable” and say could “create substantial problems, confusion, and costs” for employees and employers. U.S. Representative Glenn ‘GT’ Thompson today spoke with WJAC News Correspondent Scott MacFarlane, to discuss work in the U.S. House to pass a full-year extension and avoid more economic uncertainty for American families and small businesses.

From Rep. Thompson’s Remarks:

On Consequences of Failing to Pass a Full 12-Month Payroll Tax Cut Extension: “It would be a tax increase for 160 million Americans. This needs to be done, and that’s why I’m here the week of Christmas – to make sure we find a resolution. And I don’t think that we’re too far from that…We want to find certainty. Certainty for the taxpayers through another 12 months of a payroll tax holiday. Certainty for small businesses, so that they can build a business plan and have the confidence to go out and hire people and contribute to the economy and create jobs. Certainty for our physicians and our hospitals that are facing a thirty percent cut in reimbursements. To only do this extension for two months – that’s kicking the can down the road. We can’t afford to do that. The Senate needs to come back…and lets come up with a resolution we can all agree upon…”

On Congress Finding Agreement, Avoiding Tax Hike, Reimbursement Cuts: “I happen to believe that we are on the right track. Everybody believes that it would be good for the economy to extend the payroll tax; to reform unemployment compensation…; and, frankly, to avoid a thirty percent cut in reimbursements to doctors and hospitals, which in rural America could be enough to drive a doctor or hospital to close…”

On How Senate Short-term Extension Creates More Economic Uncertainty: “Right now the debate is between twelve months, which I think would be really good for the American citizens, and two months, which just creates all kinds of uncertainty. Most people, when you look at a two-month extension, it’s not possible to do, and it doesn’t work. Our businesses file their taxes on a quarterly basis. It would be a paperwork nightmare…”

• Tax Experts: Payroll Processors Warn “Difficulty of Implementing a Temporary Provision Passed by the Senate”: “Payroll processors are watching Congress with frustration as a Dec. 31 deadline for extending a payroll tax cut nears, and are warning companies about the difficulty of implementing a temporary provision passed by the Senate…” (Bloomberg, 12/19/11)

• President Obama: No Vacation Without Full-Year Payroll Tax Break: “Let me repeat that: Congress should not and cannot go on vacation before they have made sure that working families aren't seeing their taxes go up by a thousand dollars…” (White House, 12/15/11)

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