GAO supports payroll tax simplification.The General Accounting Office is supporting a payroll tax Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. simplification bill introduced by a Senator Max Baucus Max Sieben Baucus (born December 11 1941) is the senior United States Senator from Montana and is a member of the Democratic Party. Baucus is currently chairman of the United States Senate Committee on Finance and 10th Longest-serving current Senator. (D-Mont.), a member of the Senate Finance Committee. Paul Posner, GAO associate director for tax policy and administration issues, told the Senate Finance Subcommittee sub·com·mit·tee n. A subordinate committee composed of members appointed from a main committee. subcommittee Noun on Taxation that current payroll tax deposit rules are too complex and are urgently in need of simplification. He said the Baucus bill (S 1610) would be less burdensome on small employers than the payroll tax proposal contained in HR 2775, simplification legislation proposed by House Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. Committee Chairman Dan Rostenkowski Daniel David "Dan" Rostenkowski (born January 2, 1928 in Chicago, Illinois) was a United States Representative from Illinois from 1959 to 1995. He was a member of the United States Democratic Party. He attended Loyola University Chicago. (D-Ill.). Both proposals would simplify the payroll tax deposit system and require employers to deposit their taxes on the Tuesday or Friday following each payday. While both bills would exempts some small employers from the Tuesday-Friday requirement, under the Senate bill fewer small employers would be subject to the rule, Posner said. The House bill, however, would raise more federal revenues. The GAO estimates that HR 2775 would raise $1.4 billion in the first year, while S 1610 would raise only about $300 million. |
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