Sen. Bond backs payroll tax holiday

WASHINGTON -- Many GOP lawmakers are focused on President Bush's tax cut priorities in the current debates over how to stimulate the economy, but Republican Sen. Kit Bond is backing a different proposal.

Bond wants a temporary payroll tax holiday in December for workers and businesses. "This is the best and quickest way to stimulate the economy," the Missouri senator said Wednesday. "This will put more money in the purses and wallets of most Americans at a time of the year when they need it most."

Sought by Bond's fellow Budget Committee member, Sen. Pete Domenici, R-N.M., the payroll tax suspension would extend to taxpayers earning less than $80,400 a year. It would be financed by $38 billion in general tax revenues.

Senate Republican leaders are seeking on four key Bush proposals: acceleration of the income tax rate cuts, repeal of the corporate alternative minimum tax, enhanced business expensing and mailing of a new round of rebate checks of up to $600. Under the tax holiday idea, employer and employee alike would not pay Social Security taxes in the month of December.