How a Payroll-Tax Holiday Affects Small Businesses

Reader Comments
Back to article

they should have DEBATED the health care lol

jerry of WV 3:58PM August 20, 2011

Enough is Enough!
Taxes on labor income and on consumption negatively affect household consumption and savings. Under a high tax burden, the firms also can’t afford the costs of the factors of production (rent on capital and wages for labor). Taxation also reduces the incentive to produce more goods and services, since a large portion of your earnings is taken away by the State, so it’s easy to understand why people are losing their jobs and the majority of Americans are suffering at the hand of their own elected officials: BIG Government!
New video exposes the IRS
View online at http://economicsforliberty.wordpress.com

Orphe D of DC 11:22AM April 14, 2010

One thing that these experts do not think about , is that most of these smaller businesses that have cut payroll to survive , are soon going to have used up their reserve cash and will be going belly up .

Lemm of OH 9:43PM March 31, 2010

With the health care bill passage, this is a drop in the ocean. I am already planning on substantially lowering the number of employees to better position myself on health care. I have to let 2 employees go right away to qualify for the health care tax credit. My plans to expand in the next couple years just got moved out of country to better handle the health care expenses. Instead of employing 50-55 Americans, I will need 10 at most to ship products manufactured elsewhere.
And Congress thinks this will help put Americans to work. They should have thought of employment issues while debating the health care bill.
WAY too little, way too late.

Snobalz of CA 6:03PM March 30, 2010

Sounds like my ex when she went shopping BEFORE Christmas. Didn't make much sense then and doesn't now.
To Spend the $50k on a salary presumes the business is there to support it. nobody is going to spend $50K just because they can get $1K back for doing so in the HOPES of making more than the $50k they just spent.

Darrel B of WA 3:32PM March 26, 2010