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Pay Freeze for Federal Employees Not Off the Table in Payroll Tax Cut Debates

News released today about the latest payroll tax cut debates indicate that a pay freeze for federal employees to help pay for the tax cuts is not yet off of the table in the negotiations.

Politico is reporting today that House Republicans plan to unveil a broader payroll tax cut plan whose top offset to fund the tax cut “will be an extended pay freeze on the federal workforce through the 2015 fiscal year – which includes members of Congress – and changes to the government’s pension program.”

While there are currently no details as to what these proposed changes to the pension program might be, one can reasonably expect them to be along the lines of what has been proposed in various past cost cutting plans.

Some of these previously proposed changes include:

 We will continue to publish any new details of the payroll tax cut plans as they are released.

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.