Rep. Lowey: Don’t Leave for Holidays Before Protecting NY Taxpayers

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Congress Must Extend Payroll Tax Reduction, AMT Patch Before Year End

Expiration of Payroll Tax Reduction Would Cost 

Average Family Extra $1,689 in 2012

Congresswoman Nita Lowey (D-Westchester/Rockland) today called on the U.S. Congress not to leave Washington, D.C. for the holidays until it has acted to protect New Yorkers from severe tax hikes in 2012 by extending the payroll tax reduction.

“Just a few weeks remain before hard-working middle-class families in New York and across the country will face a tax hike of nearly $1,700 on average,” said Lowey.  “This is not the time for politics and brinkmanship – Congress should act immediately to avoid this tax hike, and we should not leave Washington, D.C. for the holidays until it is done.”

 Last year, Congress implemented a one-year reduction of the employee portion of the payroll tax paid by all American employees and employers from 6.2 percent to 4.2 percent.  

This tax reduction benefits hard-working, middle-class families by reducing taxes they pay on wages up to $106,800. 

If the payroll tax reduction is allowed to expire, the average Westchester or Rockland County family will pay an additional $1,689 in taxes in 2012.  The maximum tax increase would be $2,136.

“There is no question that expiration of the payroll tax cut will increase taxes for local families and slow economic and job growth in 2012,” said Rachel Estroff of Westchester for Change.  “Our economy and the American people cannot afford Congressional inaction.” 

Lowey also called on Congress to act before the end of the year to protect more middle-class families from being subject to the Alternative Minimum Tax (AMT). 

The AMT was established to prevent a small group of wealthy Americans from claiming so many deductions that they did not pay a cent in taxes. 

Unfortunately, the AMT exemption was not adjusted for inflation, and year after year more middle-class families are subject to an unfair tax that requires them to pay more than their fair share. 

“Our region is among the most affected by the Alternative Minimum Tax,” said Lowey.  “We must act to protect middle-class families who were never intended to be targeted by the AMT.”