Business owners: Write your Congress person NOW

[bizlady]

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....

 

[modhatter]

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.

 

[Westernskies]

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...

 

[BTravlin]

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.

 

[floatingdoc]

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

 

[BTravlin]

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.

 

[samclem]

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.

 

[fh2000]

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?

 

[samclem]

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 . . .