Spano Introduces Payroll Tax Abatement Bill
Would Inject Immediate Liquidity into the U.S. Economy
Lakeland, May 19, 2020
Tags: Economy / Small Business
Lakeland, FL – Today, U.S. Representatives Ross Spano (R-FL), who serves as the sole Florida Representative on the House Small Business Committee, introduced H.R. 6920, the ‘Keep Employee’s Earnings Protected’ (KEEP) Act of 2020. The bill creates a temporary payroll tax abatement period to last up to three months.
“As our state and country begin to open up, workers and small businesses need liquidity and they need it quickly. The KEEP Act would allow Americans to keep more of their paychecks,” said Rep. Spano. “Taking out the ‘middleman’, the federal government, will speed up our economic recovery.
If enacted, the bill would institute a 3-month abatement or freeze on payroll taxes for both employees and employers. This timetable may be reduced by President Trump if he should repeal the disaster declaration implemented on March 13, 2020 under the Stafford Act. This would result in a 6.2% increase in take home pay for most employees, and an equal savings in payroll costs for employers. This increase in pay and savings for small businesses would translate into higher economic activity and help bring back the American economy.
“The government should leave the money where it belongs, with the American people” added Spano.
As a former small business owner, Rep. Spano has been working diligently with both small business owners and district residents to ensure our economy and local jobs recover from this pandemic as quickly as possible. On April 28th, Spano unveiled his ‘Great American Comeback’ economic recovery plan in which a tax abatement period was proposed and H.R.6920 fulfills one of his plan’s priorities.
For more information on actions Rep. Spano has taken related to COVID-19, assisting local residents and small businesses, visit Spano.House.Gov.
Read bill text here.