(Washington D.C.) -- The Council for Citizens Against Government Waste (CCAGW) today announced its support for the Working Americans Wage Restoration Act,  sponsored by Senator John Aschcroft (R-Missouri).  The Wage Restoration Act would allow taxpayers to deduct Social Security taxes from their federal income taxes.

“I applaud Senator Ashcroft’s effort to expose and eliminate this absurd provision in the federal tax code,” declared CCAGW President Tom Schatz.  “Requiring taxpayers to pay federal income tax on their Social Security taxes just adds insult to injury.  Taxpayers should not be forced to pay a tax on a tax.”

According to Schatz, the Wage Restoration Act would allow American workers to deduct 6.2 percent of their income from federal taxes – the exact amount taken by the federal government for Social Security taxes.  For the average two-income family, their tax rate would be reduced by 1%, meaning overall savings on income taxes of approximately $1,200 per year. 

“This bill would result in a 1% percent tax break for everyone making less than $62,500 per year, and put money back in the hands of 77 million working Americans – where it belongs.”

Schatz also noted that the Wage Restoration Act brings equity back to the tax code.  “Amazingly enough, corporations have been able to deduct payroll taxes as a business expense for years,” Schatz remarked.  “It’s about time workers and self-employed entrepreneurs have the opportunity to benefit from the same tax break businesses already enjoy.”

The Council for Citizens Against Government Waste is a 600,000-member organization dedicated to seeking enactment of legislation to eliminate waste, inefficiency, mismanagement and abuse in the federal government.  CCAGW supported legislation similar to the Wage Restoration Act in the 104^th Congress.

For more information or to arrange interviews with CCAGW staff, please contact Jim Campi at (202) 467-5300.