Message from US Congressman Mike Ross

As you know, I have been a strong advocate for the extension of the payroll tax cut for working families. In December of 2010, I voted for the two-percentage-point reduction in payroll taxes for 2011, and late last year, I voted for and helped pass a two-month extension of that payroll tax cut so that American workers’ taxes wouldn’t go up on January 1st of this year.

The extension passed last December also protected Medicare reimbursements to providers as well as unemployment insurance benefits for out-of-work Americans. The payroll tax cut extension was scheduled to expire at the end of this month, meaning every working American would have seen their taxes go up on March 1st unless Congress acted.

This would have been no small tax increase, either. For an average family that makes $50,000 per year, they would have seen their taxes go up around $84 a month for the remainder of this year – nearly $1,000 for the rest of the year. Times are already too tough and a steep tax increase will make times even more difficult for families all across the state of Arkansas.

Last week, Democrats and Republicans came together, found common ground and reached a deal that allowed us to continue providing tax relief and economic assistance to millions of hardworking families in a bipartisan way. In addition to extending these important payroll tax cuts through the end of this year, this legislation continues unemployment benefits for American workers, and avoids a reimbursement rate cut for health care providers who treat and care for patients on Medicare.

Too many Americans continue to find themselves out of work through no fault of their own and the unemployment benefits included in this bill will help them get back on their feet and support their families.

Fundamentally, I have always believed that working families know how to spend their money better than the federal government and that’s why I supported this common sense tax cut extension. Overall, this legislation will be a big help to a great number of families in Arkansas and across America and it will be critical to ensuring our economy continues to recover and grow. In fact, the nonpartisan Congressional Budget Office estimates payroll tax cuts would generate up to 90 cents on the dollar in economic activity, helping to increase production and create jobs.

As your Congressman, I will continue working with both Democrats and Republicans, bringing them together to find commonsense ways we can cut taxes and reduce our deficit. Rest assured my focus will continue to be on our economic recovery and on creating jobs for families in Arkansas’s Fourth Congressional District. I believe extending these tax cuts for everyone will help with our economic recovery as we bounce back from these tough times.