Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Business owners: Write your Congress person NOW
Old 12-09-2010, 11:34 AM   #1
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 637
Business owners: Write your Congress person NOW

The pending tax bill just was rejected for a vote.

Part of that bill included a one year 2% reduction for employees of the social security tax for 2011- (though the employer will stay pay the full 6.2%).

As a small business person, should we not be permitted a one year reduction in the self employment tax in 2011? Why should we be excluded?

Inside of 5 minutes, you can google your congressional reps, and email them your thoughts on this matter.

I would urge you each to do so regarding your views-whether you agree with my view or not. I for one think Congress needs to get their act together. I am tired of the party line votes....
__________________

__________________
bizlady is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-10-2010, 07:38 PM   #2
Full time employment: Posting here.
 
Join Date: Aug 2005
Posts: 942
First of all. I am also a business owner. I might also add for clarification I am more progressive in my thinking than not.
However, I do not agree with these small tax breaks for people. They are too small to do any good. Really 2% of social security taxes. Tell me how that's going to impact any ones life. They won't even notice it. Now take that amount times 300,000,000 people and maybe you could rebuild or repair some bridges that are falling down or refurbish some schools.

For the most part. I hate these giveaways, as I feel this money collectively could do so much more good.
__________________

__________________
modhatter is offline   Reply With Quote
Old 12-10-2010, 08:21 PM   #3
gone traveling
 
Join Date: May 2008
Posts: 3,864
Quote:
Originally Posted by modhatter View Post
For the most part. I hate these giveaways, as I feel this money collectively could do so much more good.
You don't have to hate the "giveaway"...Think of the good it would do if you and your like-minded colleagues collectively sent in your share...
__________________
Westernskies is offline   Reply With Quote
Old 12-10-2010, 08:24 PM   #4
Full time employment: Posting here.
BTravlin's Avatar
 
Join Date: May 2010
Posts: 994
I don't think they should be giving either employees or employers the 2% reduction. The Social Security program is already a mess and now they are making it worse rather than fixing it. Makes no sense at all but then again they are politicians.
__________________
Wherever you go, there you are.
(In other words, no whining!)
BTravlin is offline   Reply With Quote
Old 12-10-2010, 08:34 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2009
Posts: 58
Obviously only the op runs a businesss. I could sure use the 2% as an employer. I know dam well i have as much chance collecting ss as a 1 legged man has in winning an as kicking contest
__________________
floatingdoc is offline   Reply With Quote
Old 12-10-2010, 09:29 PM   #6
Full time employment: Posting here.
BTravlin's Avatar
 
Join Date: May 2010
Posts: 994
Quote:
Originally Posted by floatingdoc View Post
Obviously only the op runs a businesss. I could sure use the 2% as an employer. I know dam well i have as much chance collecting ss as a 1 legged man has in winning an as kicking contest
Wrong. I'm a self employed business owner so I pay the tax twice.
__________________
Wherever you go, there you are.
(In other words, no whining!)
BTravlin is offline   Reply With Quote
Old 12-10-2010, 09:32 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,614
Bizlady,
What's your complaint? If you are self-employed, the proposed tax deal will reduce your self employed tax by 2% of overall income (from 12.4% total to 10.4% total for your SS taxes, which is both the employee side and the employer side). That's the same deal that "regular" employees get. Both you and a "regular" employee will see their net takehome pay go up by about 2%. What's your complaint?

The plan also allows businesses to immediately "expense" some purchases that normally have to be spread out over several years. Most small businesses should like that.

Here's a quick overview of the deal.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 12-11-2010, 10:06 AM   #8
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 358
Question for the 2% payroll tax reduction of this new proposal:

Is it true that though we will only pay 4.2% Social Security payroll tax for one year, we will still get the credit of 6.2% in our future Social Security benefits?

If we pay 4.2% and only receive 4.2% credit eventually, this would be just like reducing your 401K contribution. You keep more money now, but you also receive less money in the future.

How does this work?
__________________
fh2000 is offline   Reply With Quote
Old 12-11-2010, 10:19 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,614
Quote:
Originally Posted by fh2000 View Post
Question for the 2% payroll tax reduction of this new proposal:

Is it true that though we will only pay 4.2% Social Security payroll tax for one year, we will still get the credit of 6.2% in our future Social Security benefits?

If we pay 4.2% and only receive 4.2% credit eventually, this would be just like reducing your 401K contribution. You keep more money now, but you also receive less money in the future.

How does this work?
According to what I've read, there will be no change in what you'll get later. You'll get the same credit as if you'd made the regular contribution. That's one reason why this tax change will likely make our deficit worse, though some argue that it will help spur enough growth to make up for the lost taxes.

You'd probably be surprised how little difference it would make, anyway. For most folks, maybe a dollar or two less per month in their SS check. Even if the benefits were reduced due to the lower contribution, most folks would be far ahead by having the extra money to save and invest. If they'd only do that . . .
__________________

__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Are you a private person or a people person? easysurfer Other topics 95 11-23-2010 10:01 PM
Who do you write like? Purron Other topics 67 07-20-2010 06:41 PM
Wealthy Business Owners Don't Want to Retire Early retire@40 FIRE and Money 16 06-06-2008 08:44 AM
investment vehicles for small business owners simple girl FIRE and Money 6 03-07-2007 10:53 AM
I need to write a will thefed Other topics 26 12-07-2006 07:41 PM

 

 
All times are GMT -6. The time now is 01:14 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.