Bill would help save on taxes

Staff reports

U.S. Sen. Charles Schumer backs a proposed tax cut he said would put more money in the middle class’ paychecks.

Schumer, D-N.Y., said Wednesday he supports legislation currently on the Senate floor that would save the average middle-class upstate family about $1,500 on their taxes next year.

The Middle Class Tax Cut Act of 2011 would extend and expand the payroll tax credit that has helped reduce the tax burden on middle-class families by about $1,000 this year, Schumer said.

The tax credit is set to expire at the end of the year. If Congress fails to extend the payroll tax holiday, the average New York middle class family would see their taxes jump by the same amount, about $1,000, in the 2012 tax season, Schumer said.

Schumer said the legislation would not add to the deficit, instead it’s fully paid for by a 3.25 percent surcharge on income taxes for income totaling more than $1 million.

“Stretching the middle-class paycheck and giving businesses the breathing room to reinvest in their businesses and create new jobs is a no-brainer,” Schumer said. “We need to stop this potential tax increase dead in its tracks, and to lighten the tax load on middle-class families.”

Prior to the current tax cut, employees had 6.2 percent of their wages deducted for Social Security taxes. That number was reduced to 4.2 percent for the current year.

Schumer said, without congressional action, the payroll tax rate will increase back to 6.2 percent.

What the proposed bill would save middle class families in Federal Insurance Contributions Act taxes in 2012:

• Steuben County, the median middle-class family would save $1,326.

• Chemung County, the median middle-class family would save $1,340.

• Schuyler County, the median middle-class family would save $1,316.