Capito: Extend Payroll Tax Holiday For Full Year

Press Release

Congresswoman Shelley Moore Capito, R-W.Va., says extending the payroll tax holiday for only two months is "absolutely ridiculous" and urgesleaders in the House and Senate to appoint conferees to negotiate a deal to extend this much needed relief for a full year. Moreover, tax experts agree that a two-month plan isn't workable because it does not leave enough time for businesses to comply which significant changes in tax policy.

"Failure to do so will create even more economic uncertainty both in family budgets and small business budgets. The House already passed a measure--which I strongly supported--to ensure working families' taxes don't go up at least $1000 next year. The Senate refuses to grant this certainty to American families," stated Capito.

Today the U.S. House of Representatives voted to create a conference committee comprised of Senate and House negotiators to settle the fate of a much-needed tax extension once-and-for-all. Capito previously voted for a full one-year extension of the payroll tax holiday, extension of unemployment benefits and reimbursement payments for doctors who treat seniors. Unfortunately, the Senate passed only a two-month extension, pushing the problem off and adjourning for the Holidays.

"Working families deserve to know if they're going to pay $1,000 more in taxes or if they can budget that money for gas and groceries. And those who have found themselves in tough times expect and deserve to know if they'll receive an unemployment check after the next 60 days," stated Capito. "This game of "ping-pong' across the Capitol isn't working, and the American people are disgusted that we can't get things done."

Officials from the nonpartisan National Payroll Reporting Consortium, Inc. penned a letter to members of Congress expressing concern that a two-month extension is too short of a time to implement significant changes to the tax code. Tax experts argue that such a short extension could cause significant confusion and potentially increase costs on employers.

"I am baffled that the Senate would pick such an arbitrary timeline when we're dealing with a policy that affects every working family in America. A two-month tax break is irresponsible and ridiculous and only creates even more uncertainty in the economy," stated Capito.

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