WASHINGTON, Dec. 7, 2010 /PRNewswire-USNewswire/ -- Outlining its agreement with Republican Congressional leaders on tax cuts and unemployment insurance extensions, the White House announced that the agreement includes "growth-oriented payroll tax cuts for workers" and credited the Bipartisan Policy Center's (BPC) Debt Reduction Task Force for the idea.
The BPC's Debt Reduction Task Force, led by former Senate Budget Committee Chairman Pete Domenici and former White House Budget Director Alice Rivlin, released the bold and comprehensive plan, Restoring America's Future, last month, which includes a proposal to suspend Social Security payroll taxes for employers and employees for 2011.
Specifically, the White House summary states:
"The framework agreement reached by the administration includes an about 2%, employee-side payroll tax cut for over 155 million workers – providing tax relief of about $120 billion next year. This tax cut will have a major impact on jobs and growth – creating substantial numbers of jobs. It is widely recognized by economists across the political spectrum as a high bang for the buck way to boost growth and was cited by both major deficit reduction commissions as consistent with long term fiscal discipline.
"A payroll tax cut has been endorsed by experts and commentators from across the political spectrum. Just last month, both the President's Fiscal Commission and the Bipartisan Policy Center's Debt Reduction Task Force described a payroll tax cut in 2011 as an effective way to spur growth and job creation."
Along with the full payroll tax holiday for 2011, the BPC Task Force proposes a bold and far-reaching plan to balance the nation's "primary budget," everything other than interest payments, in 2014 and reduce the nation's public debt to 60% of GDP by 2020. The BPC Task Force calls for simultaneous consideration of a stimulative tax cut and long-term debt reduction measures.
"We are pleased that the President and Republican leaders saw fit to include a version of our payroll tax cut in their agreement on taxes," said Senator Domenici. "Although not as robust as the payroll tax holiday that we proposed, we nevertheless believe that their proposal will help revive the economy and create jobs. Having said that, we also believe the President and Congress should follow up this agreement, early in the coming year, with a serious bipartisan plan to reduce federal deficits and debt that, if not addressed, will weaken the economy over time and raise the risks of an economic crisis."
The BPC Task Force includes 19 former White House and Cabinet officials, former Senate and House members, former governors and mayors, and business, labor, and other leaders. To read the full report, click here.
To read the full White House fact sheet, click here.
About the Bipartisan Policy Center:
In 2007, former U.S. Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole, and George Mitchell formed the Bipartisan Policy Center (BPC) to develop and promote solutions that can attract the public support and political momentum to achieve real progress. Currently, the BPC focuses on issues including health care, energy, national and homeland security, transportation, science and economic policy. For more information, please visit our website: http://www.bipartisanpolicy.org/.
SOURCE Bipartisan Policy Center