By Rob Basso on
2/20/2012 1:41 PM
On Friday it was announced that the payroll tax cut will be extended for the remainder of the 2012 year. Instead of the normal 6.2 percent level, Congress has decided to keep the Social Security payroll tax at its lower 4.2 percent rate and to extend unemployment benefits. While this is a short term solution to increasing the cash flow in the economy by providing 160 million working Americans with a slightly larger paycheck -approximately $1000 per year on a $50k salary- the Congressional Budget Office said that the bill would increase federal deficits by $89.3 billion over the next ten years. They will account for the lost revenue for Social Security benefits by pulling from general tax revenue, which will ultimately add to the budget deficit...
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By Rob Basso on
12/22/2011 11:23 AM
I read an article on The Hill about a letter from the National Payroll Reporting Consortium, a union of major payroll firms that includes Automatic Data Processing and Paychex. The letter criticized the payroll tax legislation that was passed by the Senate earlier in the week.
Pete Isberg, president of the National Payroll Reporting Consortium states that “the two-month extension would be a nightmare for payroll processing firms to implement because it includes a provision to ensure that wealthy income earners don’t pay a lower payroll tax rate than middle-class workers”...
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By Rob Basso on
12/14/2011 11:09 AM
It’s been two years, countless complaints by politicians in Nassau and Suffolk counties, and an angry main street but at long last the MTA Payroll Tax that many believe was “unconstitutional” has been eliminated for many small businesses across New York State.
Governor Andrew Cuomo signed a new law eliminating the MTA Tax for 289,000 small businesses across the state with an annual payroll under $1.25 million. Businesses with a payroll between $1.25 million and $1.5 million will see their MTA payroll tax cut to 0.11 cents per employee, while those with payrolls up to $1.75 million will have their tax reduced to 0.23 cents. These adjustments eliminate the tax for almost 80 percent of businesses in the region. The state will fund the $250 million cost of the payroll tax through a $2.6 billion increase in income taxes on the wealthy...
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