Dec 12 2001
WASHINGTON, DC - Senator Tom Carper today renewed his call for the Congress to reach consensus on an economic stimulus bill by passing a "Payroll Tax Holiday" and holding off on a faster expansion of tax rate reductions. Senate Majority Leader Tom Daschle said yesterday that the Democratic controlled Senate could be willing to include this payroll tax holiday as part of a compromise with the Republican-controlled House of Representatives. "If the Senate can bridge the current divide over an economic stimulus package by enacting a month-long payroll tax holiday, we would give a great gift to our economy this holiday season," Carper said. "In the months since September 11, our nation has been more unified than at any point in my lifetime. For months, the Congress seemed more committed to finding real solutions and working together than at any point during my time in public service. It is a commitment we must keep. The pay roll tax holiday is a way to keep it." Carper was one of the first Democrats to sign on to a plan sponsored by Republican Senator Pete Domenici because it meets three important criteria. It would have an immediate impact to stimulate the economy. Secondly, it does not burden future budgets with long-term costs. Finally, it would be temporary in nature. "When I spoke from the Senate floor, I urged my colleagues to consider this proposal as a means of blazing a bipartisan trail out of the rough economic times our nation now faces. The payroll tax holiday is a path we can, and should, take together," Carper said. "I was heartened to hear Majority Leader Daschle say this could be a point of real compromise." Unlike some of the proposals for more targeted tax cuts, the pay roll tax holiday applies to every single person who pays payroll taxes â€“ from the part-time service employee to the most wealthy executive. Unlike the stimulus plan passed by the House of Representatives, which gives billions of dollars back to the biggest businesses, this plan helps even the smallest family business as well. The plan also helps most state governments by giving them the holiday as well, which would provide them additional revenue to pay for economic stimulus efforts tailor-made for their own states.