NSBA Urges Lawmakers to Extend Payroll Tax Cut for EmployersDecember 5, 2011
As Congress debates extending the payroll tax cut, the National Small Business Association is calling on lawmakers to work toward a compromise that will include small employers, not exclude them. Despite the immediate, tangible benefits small employers stand to gain from a payroll tax cut, some lawmakers have embraced only extending the payroll tax cut to employees, not employers. Below is a statement from NSBA President and CEO Todd McCracken.
“Often forgotten in this debate is the benefit a payroll tax cut can provide to struggling small-business owners. In an economy where credit continues to be tight, lower payroll tax rates provide immediate cash flow to smaller companies. This is money entrepreneurs can use to take advantage of business opportunities—leading to expanded business, more hiring, and investment in equipment.”
“Failing to extend this payroll tax cut to employers could result in even less availability of financing—at exactly the wrong time. As the economy begins to expand and opportunities begin to open up, the working capital provided by lower payroll taxes will provide expansion opportunities for many smaller companies. “
“NSBA urges Congress to enact an extension of payroll tax relief that addresses both employer and employee rates. Such an approach is much more powerful because it puts money in the pockets of workers and consumers, and it puts cash in the hands of small businesses to grow economic opportunity. Without both of these pieces, the rate reductions are far less likely to promote strong economic growth.”
“As the debate on tax reform and deficit reduction continues, I cannot stress enough the importance of tackling broad tax reform as the only way to truly address small-business concerns. Reforming the corporate tax structure does nothing for the overwhelming majority of small-businesses owners, 83 percent of whom pay taxes for their business at the personal income level.”