Monday, January 9, 2012

Reed Warns that clock is ticking on Social Security; Calls for Senate to work with House on payroll tax rate extension

During a conference call with media this morning, Congressman Tom Reed warned that the clock is ticking toward the deadline by which the House and Senate need to reach an agreement on extending the cut to payroll tax rates.  

“Social Security is funded through payroll taxes,” Reed observed. “The solvency of Social Security will be impacted by these rate extensions. We need adequate time to make corresponding spending cuts and reforms elsewhere and ensure those funds are diverted to social security to preserve its long-term health.  We must be certain that social security is protected during this process.”

“As we have seen repeatedly over the last year, when negotiations are left until the last minute, good policy is sacrificed and politics and public relations take over,” Reed continued.  “We have been working on the payroll tax rate extension since before Christmas. We need the Senate conferees to come to Washington so that we can finally work out a long-term solution for taxpayers.” 

Reed supports extension of the lowered payroll tax rates through the rest of the year. The rates are  currently scheduled to expire February 29.

One of eight House Republican negotiators, Reed added that he would “Return to Washington tomorrow if the Senate is willing to get to work.”  The Senate is scheduled to return the week of January 23. “I hope that the Senate and President can put politics aside and work in good faith toward a long-term solution rather than looking for short-term political points,” he said.

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