Political Quotes

“Mr. Speaker, the Committee on Ways and Means brings before the House today H.R. 4278, a bill simplifying and streamlining the payment of Social Security payroll taxes on domestic workers. This bill will reform the so-called nanny tax to update an old law and to ease the paperwork burden on household employers. It will increase the number of employers who comply with the law and it will assure that more workers will receive much-needed protection under Social Security. First, the Social Security tax threshold will be updated from $50 a quarter to $1,250 a year, beginning in 1995. In addition, the threshold will be indexed for the future. This threshold has not been updated since 1950, and, during those years, its value has declined. No one ever intended that Americans be required to pay taxes on occasional babysitters or yard workers. But that's what has happened over time. This bill will take care of that problem by exempting this type of occasional work from Social Security taxes. At the same time, it will protect full-time nannies and housekeepers by assuring that they receive Social Security coverage.”