Press Releases
Feinstein: Cut Payroll Tax for California Families
Immediate tax relief for 17 million Californians; saves average family more than $1,800 in 2012
Dec 01 2011
Washington—Senator Dianne Feinstein (D-Calif.) is supporting a Senate bill to extend and expand a reduction in the payroll tax rate paid by employees in 2012—a plan that provides immediate tax relief to 17 million California taxpayers and saves the average California family more than $1,800 in 2012.
The Middle Class Tax Cut Act cuts the employee Social Security payroll tax rate in half from 6.2 percent to 3.1 percent on the first $110,100 of taxable wages and will save California workers $20.7 billion in 2012. This tax cut is paid for with a 3.25 percent surtax on taxpayers earning more than $1 million annually.
Senator Feinstein said: “Cutting the payroll tax in half will put an average of $1,800 in each California family’s pocket. In 2012 this tax cut saves 17 million working Californians more than $20 billion. This is one additional effort we can make to move the economy forward and increase the buying power of our citizens. Bigger paychecks will hopefully help struggling families and promote economic growth.”
Leading economists support extending the payroll tax cut in 2012 to promote economic growth, create demand and increase job creation.
A county-by-county list detailing savings from the Middle Class Tax Cut Act is below:
|
Median Household Income |
Savings From Payroll Tax Cut (Median Family) |
Tax Increase For Median Family |
|
|
California |
$58,925 |
$1,827 |
$1,179 |
|
Alameda County |
$68,258 |
$2,116 |
$1,365 |
|
Alpine County |
$45,391 |
$1,407 |
$908 |
|
Amador County |
$54,461 |
$1,688 |
$1,089 |
|
Butte County |
$41,196 |
$1,277 |
$824 |
|
Calaveras County |
$51,564 |
$1,598 |
$1,031 |
|
Colusa County |
$47,472 |
$1,472 |
$949 |
|
Contra Costa County |
$75,084 |
$2,328 |
$1,502 |
|
Del Norte County |
$38,252 |
$1,186 |
$765 |
|
El Dorado County |
$68,778 |
$2,132 |
$1,376 |
|
Fresno County |
$45,219 |
$1,402 |
$904 |
|
Glenn County |
$41,904 |
$1,299 |
$838 |
|
Humboldt County |
$35,985 |
$1,116 |
$720 |
|
Imperial County |
$37,846 |
$1,173 |
$757 |
|
Inyo County |
$44,090 |
$1,367 |
$882 |
|
Kern County |
$46,938 |
$1,455 |
$939 |
|
Kings County |
$44,102 |
$1,367 |
$882 |
|
Lake County |
$36,895 |
$1,144 |
$738 |
|
Lassen County |
$46,377 |
$1,438 |
$928 |
|
Los Angeles County |
$54,375 |
$1,686 |
$1,088 |
|
Madera County |
$42,769 |
$1,326 |
$855 |
|
Marin County |
$86,658 |
$2,686 |
$1,733 |
|
Mariposa County |
$42,775 |
$1,326 |
$856 |
|
Mendocino County |
$41,488 |
$1,286 |
$830 |
|
Merced County |
$39,922 |
$1,238 |
$798 |
|
Modoc County |
$34,290 |
$1,063 |
$686 |
|
Mono County |
$53,973 |
$1,673 |
$1,079 |
|
Monterey County |
$57,647 |
$1,787 |
$1,153 |
|
Napa County |
$66,970 |
$2,076 |
$1,339 |
|
Nevada County |
$57,250 |
$1,775 |
$1,145 |
|
Orange County |
$71,735 |
$2,224 |
$1,435 |
|
Placer County |
$70,751 |
$2,193 |
$1,415 |
|
Plumas County |
$42,684 |
$1,323 |
$854 |
|
Riverside County |
$55,151 |
$1,710 |
$1,103 |
|
Sacramento County |
$52,502 |
$1,628 |
$1,050 |
|
San Benito County |
$61,281 |
$1,900 |
$1,226 |
|
San Bernardino County |
$52,137 |
$1,616 |
$1,043 |
|
San Diego County |
$60,103 |
$1,863 |
$1,202 |
|
San Francisco County |
$70,247 |
$2,178 |
$1,405 |
|
San Joaquin County |
$52,201 |
$1,618 |
$1,044 |
|
San Luis Obispo County |
$55,638 |
$1,725 |
$1,113 |
|
San Mateo County |
$84,678 |
$2,625 |
$1,694 |
|
Santa Barbara County |
$58,555 |
$1,815 |
$1,171 |
|
Santa Clara County |
$84,990 |
$2,635 |
$1,700 |
|
Santa Cruz County |
$60,816 |
$1,885 |
$1,216 |
|
Shasta County |
$42,552 |
$1,319 |
$851 |
|
Sierra County |
$41,788 |
$1,295 |
$836 |
|
Siskiyou County |
$39,218 |
$1,216 |
$784 |
|
Solano County |
$65,079 |
$2,017 |
$1,302 |
|
Sonoma County |
$61,985 |
$1,922 |
$1,240 |
|
Stanislaus County |
$48,550 |
$1,505 |
$971 |
|
Sutter County |
$48,073 |
$1,490 |
$961 |
|
Tehama County |
$38,179 |
$1,184 |
$764 |
|
Trinity County |
$33,546 |
$1,040 |
$671 |
|
Tulare County |
$39,876 |
$1,236 |
$798 |
|
Tuolumne County |
$48,027 |
$1,489 |
$961 |
|
Ventura County |
$71,246 |
$2,209 |
$1,425 |
|
Yolo County |
$56,120 |
$1,740 |
$1,122 |
|
Yuba County |
$40,947 |
$1,269 |
$819 |
The Middle Class Tax Cut Act:
- Cuts the payroll tax in half for 98 percent of U.S. businesses. The bill cuts in half (from 6.2 percent to 3.1 percent) the Social Security payroll tax paid by employers on the first $5 million of taxable payroll for 2012.
- Gives an added incentive for businesses to hire. The bill completely eliminates (from 6.2 percent to 0 percent) the Social Security payroll tax paid by employers on the first $12.5 million of an employer’s increased taxable payroll for the 4th quarter of 2011 and $50 million in increased payroll for 2012.
- Protects Social Security. The bill transfers funds from the General Fund to the Social Security Trust Fund to ensure that Social Security is unaffected by this temporary payroll tax relief.
###
