Payroll Taxes

5 12 2011

There have been many debates in congress about extending the tax breaks for company payrolls. The tax breaks that consist of about 6.2 percent of breaks for companies was originally proposed but were revised in the senate. The workers tax is still proposed to be cut to 3.1 percent instead of the current 4.2 percent. The proposed bill would also decrease the new proposed tax on the wealthy who make over one million a year. Their added tax instead of being the proposed 3.25 percent hike would fall more in the 1.5-1.7 percent range. This bill still will face its challenged when it is sent to the republican dominated House Of Reps. If something is not passed by the beginning of next year than the current taxes will be extended and stay at a 6.2 percent break. The estimated cost of these taxes according to Rueters is about 110 billion dollars to the federal government.

Although taxes are going to need to be raised in order to get the deficient under control, we first need to get our expenses under control and have a solid plan on how to decrease spending. We cannot continue to raise taxes higher and higher to cover losses, our country need to increase jobs and GDP and cover taxes that way rather than hurting the ones already struggling working. Small business owners need to keep up to date on tax changes both on a Federal level and on the state level. Taxes are part of your company expenses and without being aware of any changes you could find yourself owing more than you had planned.

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