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Payroll Tax Cut Extension and Unemployment Insurance Benefits (2012)

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February 21, 2012

Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630), passed the United States House of Representatives 293-132 February 17, 2012. The United States Senate passed the bill by a 60-36 vote February 17, 2012. President Barack Obama signed the bill into law February 22, 2012.

The bill does the following: Extends Medicare payments to doctors giving seniors the advantage to keep their doctors. Extends the two percent Social Security payroll tax cut Extends unemployment benefits Repeals part of PPACA that does not work and would lead to problems in the future Calls for a establishment of a national public safety broadband network to: Expand high speed wireless broadband Give better access to first responders Increases the 2012 deficit by $101.1 billion according to the CBO Expands FEMA aid Calls for federal drug testing for drug related employees Extends temporary assistance for needy families (TANF) Reduces federal deficit Extends job incentives to small businesses Improves work search for the long unemployed Mandates study of changes to: Utilization of Amateur Radio in emergencies Federal regulation of private land use restrictions on amateur antennas

This bill was sponsored by Representative Dave Camp (R) of Michigan on December 9, 2011, at which time it was called the Temporary Payroll Tax Cut Continuation Act of 2011. The original bill passed the House 234-193 on December 13, 2011, and the Senate unanimously on December 17, 2011. On December 23, 2011, the House and Senate passed H.R. 3765, also called the Temporary Payroll Tax Cut Continuation Act of 2011, and President Obama signed it the same day. The bill's effect was to extend lower payroll tax rates past December 31, 2011, when they would have expired.

The Social Security tax rate would have increased from 4.2 percent to 6.2 percent had the bill not passed. The rate would have applied to the first $110,100 in income. However, under the Senate version of the bill, the temporary tax cut applied to only one-sixth of that income amount, or $18,350, since the income would have to be earned in the first two months of 2012. Under the House version, persons earning far more than $110,100 a year would have received the full benefit in the two months.

A conference committee resolved the differences between the House version and the Senate version on February 17, 2012, and the conference report was approved by the House and the Senate.

http://en.wikipedia.org/wiki/Middle_Class_Tax_Relief_and_Job_Creation_Act_of_...

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