Plan Presented to Extend Payroll Tax Cut

Missouri Senator Claire McCaskill spent part of Wednesday talking about a proposal to extend the payroll tax cut.

McCaskill and Senator Susan Collins of Maine presented a bill that would continue the 4.2 percent tax rate for the next year, extending the rate to employers for the first $10 million in payroll. McCaskill says the plan is to avoid a tax increase.

Collins and McCaskill’s bill pulls revenue from two main areas.

Small business owners who report their business income on their personal tax returns would not be affected.

Collins and McCaskill both believe they have a bill that could gather bipartisan support.