Employer Payroll tax tends to eat up a bunch of working “cash flow” for small businesses and It prevents them from being able to Grow and Expand the company. It also prevents the small businesses from being able to buy new equipment needed to make their employees safer and more efficient.
For a small business with 20 employees or less, payroll tax should be eliminated to help with Growth.
Jobs build the American Economy, we must give small businesses a chance to get established, and in return, offer more jobs!
May be the case, but 250k really isn’t that big either! I do 1.7M revenue a year as a
“small Electrical Business ” and the employer contribution taxes I pay to the government, absolutely destroys my cash flow, and effects my Growth tremendously! And I only have 9 employees.
When materials are as expensive as they are now a days, the revenue I do is a drop in the bucket, So Every penny counts to maintain my business, take care of my employees and their families, and have a chance at growth.
Not trying to get it ALL at once, just a compromise to take the pressure off small business owners.
See the FairTax.org , Yes if you are doing 1.7M rev - exp I’m guessing you do not make 250k in net income, so you would pay no taxes. And just to be clear if you didn’t have those employees you wouldn’t pay those taxes, so it is just is a trick the gov’t plays on you to think that that is your money. That money is the employees money, because you wouldn’t pay it if they didn’t exist and if the tax went away another electrical company would offer them the additional money to work for them. so you would end up having to raise you compinsation anyway and would not get that money.
any payroll tax honestly. I have 3 employees one full time and one part time and i have to pay over $1000 per pay period on top of unemployment and quarterly taxes
If I understand it correctly, say you pay $50 in federal taxes per paycheck, your job has to match that. So, if you at the end of the year paid 2600 in taxes, so did your boss. Imagine being a small business, mom and pop shop and having 5 employees… That’s half of a minimum wage salary every year your employer could use towards more production, reinvesting in the business and hiring more people.
Please communicate the following to Mr. Kennedy, Dr. Oz and/or Mr. President Trump if you can. They can advise their economic advisors for confirmation on the plan.
No Taxes, No Tariffs.
Phase 1: 25% income tax for 10 years as a transition: only after a $1,000,000 net income deductible for individuals, after a $5,000,000 net income deductible for corporations.
No tariffs instead we ban trade with Asia, ME, and Africa to protect our companies’ profits, product and service quality and competitiveness.
No tax shelters and money earned in the US must stay in the US unless you have dual citizenship.
Phase 2 (after 10 years of phase 1) : no income tax, tax income to be replaced by government owned new industries’ net income.
Phase 3 eliminate all taxes except sales tax. Sales tax should be 10%, of course, funding the counties.
FICA is not a tax, we call it payroll tax but it is a kind of maintenance expense. It was designed to accrue and pay out as you need it. But we lost our way somewhere along the line.
The reason we can’t get rid of it is because we are setting our sights for free healthcare and unemployment insurance from this fund. We are trying to get Trump’s attention on this issue. If we can get free healthcare and unemployment insurance then it would be worth the expense.