S.Amdt. 4509

SA 4509. Mr. McCAIN submitted an amendment intended to be proposed by him to the bill H.R. 5297, to create the Small Business Lending Fund Program to direct the Secretary of the Treasury to make capital investments in eligible institutions in order to increase the availability of credit for small businesses, to amend the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. REDUCTION IN SOCIAL SECURITY PAYROLL TAXES.

(a) In General.--

(1) Employer taxes.--The table in section 3101(a) of the Internal Revenue Code of 1986 is amended to read as follows:

“In the case of wages received during: The rate shall be:

2010 and 2011........................... 3.1 percent

2012 or thereafter...................... 6.2 percent”.

(2) Self-employment taxes.--

(A) In general.--The table in section 1401(a) of such Code is amended to read as follows:

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“In the case of a taxable year

beginning after: And before: Percent

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December 31, 2009............... January 1, 2012... 9.3

December 31, 2011............... .................. 12.40”.

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(B) Conforming amendments.--

(i) Section 164(f) of such Code is amended adding at the end the following new paragraph:

“(3) Special rule for 2010 and 2011.--In the case of taxable years beginning after December 31, 2009, and before January 1, 2012, the deduction allowed under paragraph (1) with respect to taxes imposed by section 1401(a) shall equal to two-thirds of the taxes so paid.”.

(ii) Section 1402(a)(12)(B) of such Code is amended by inserting “(in the case of taxable years beginning after December 31, 2009, and before January 1, 2012, two-thirds of the taxes of the rate imposed by section 1401(a) and one-half of the rate imposed by section 1401(b))” after “year”.

(b) Funding From General Fund.--There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraphs (1) and (2)(A) of subsection (a) . Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.

(c) Use of Stimulus Funds to Offset Loss in Revenues.--The unobligated balance of each amount appropriated or made available under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) (other than under title X of division A of such Act) is rescinded pro rata such that the aggregate amount of such rescissions equals the reduction in revenues to the Treasury by reason of the amendments made by paragraphs (1) and (2)(A) of subsection (a). The Director of the Office of Management and Budget shall report to each congressional committee the amounts so rescinded within the jurisdiction of such committee.