Are we (done) playing chicken?!

We may be the one’s in the chicken suits, waving people to c’mon in.  No one is waving back! We may be the one’s saying, “May I take your order please?” No one is saying, “Yes please.” There is a multitude of mundane and less rewarding tasks we do for ourselves and for our families. We are taken for granted. It is bad enough our family and friends expect us to take it on the chin. Now big government wants a piece of the action. That’s right! Don’t fool yourself. Even if you are getting a nice refund check, you’re paying taxes brothers and sisters. If you are a working stiff, more and more you are working for those who do not work or will not work.

If this sounds familiar, welcome to the working class. We are tired, we are exhausted. The people who have been elected to spend our tax dollars depend on it. That is why we need to get singular and focused on one message. We need a “reverse stimulus.” The silent majority can no longer remain silent. Hello! “Wake up Washington!” We are done playing chicken!

Campaign rhetoric was and the new Administration maintains, “Ninety-five (95) percent of our taxpayers will not pay more taxes.” The solution the President campaigned on was that the rich needed to pay more taxes. Where the sleight of hand was and remains, is that the working class, the wage earners, the self-employed and small business owners need a tax break if the economy is to recover. The rich will stop spending, cut expenses, including employment (the working class); and effectively negate any tax increases.

Working class people, whether they get a refund or earned income tax credit are taxpayers. Make no mistake about it. Our hard earned dollars are contributing to government programs, Local, County, State and Federal taxes on consumables such as gasoline for our clunkers (we all have one).
Working people need a holiday; a payroll tax holiday! The butcher, the baker and the candlestick maker; even Joe the plumber, it’s time to place our hard earned tax dollars where it is will do the most good, back in our pockets. We can do that if we can go on holiday, a payroll tax holiday. We are the working class, the employees who work for small businesses, the self-employed and the small business owners that make up the backbone of the United States of America.

Banks won’t loan us money, so our home becomes our bank. Merchants won’t extend us credit, so we play the shell game with credit cards. Small business owner’s prospective customers doubt we can stay in business. Many of them buy from bigger companies. Many of those companies depend on big labor or 3rd world countries to make “throw away products” and provide “unintelligible services” that would frustrate a monk. Now, we, the working class have had to bailout big government, big business and big labor, mired in corruption, yesterday’s technology and bottomless bureaucracy.

We’re still here. Unlike big business and big labor we actually want your business. We actually take pride in what we do, make great products and provide great service because we stand behind them. Why? The self-employed, small business people and their employees have to stay in business to make a living and pay our taxes.

A bipartisan effort, two freshmen House members, are offering a six month “holiday” from payroll taxes that they say would benefit both small businesses and the working poor. Under the bill offered by Rep. Aaron Schock, R-Ill., and Rep. Walt Minnick, D-Idaho, employers and employees of businesses with 50 or fewer workers would pay no Social Security and Medicare taxes for six months.   See the link below for more details…

Currently, both employers and employees are required to pay the 6.2 percent Social Security tax and the 1.45 percent Medicare tax throughout the year. According to the congressional Joint Committee on Taxation, payroll taxes are a bigger burden than income taxes for more than four out of five tax filers. Lower-income workers would especially stand to benefit from a suspension of the taxes: according to the Joint Committee on Taxation, more than 60 million tax filers with incomes under $40,000 had tax returns in which their payroll taxes were greater than their income taxes.

We need tax relief for the working class, their families, their fellow employees, the self-employed, and small business owners. Ask for a holiday for the working class, a payroll tax holiday. Maybe we need a million man and woman march on Washington to demonstrate the need for a Payroll Tax holiday for the working class of America?

About Idea Capitalist
Family guy and entrepreneur. Small Business owner. NFIB Leadership Council member. Serial blogger.

3 Responses to Are we (done) playing chicken?!

  1. Dan says:

    Right on!


  2. awiessner says:

    A new study from Challenger, Gray & Christmas shows the percent of laid-off workers starting their own businesses sunk to an all-time low in the first half of this year. Just 3.7 percent of job-seekers ended up starting a business instead in the survey. For comparison, 8.6 percent of the unemployed became entrepreneurs in calendar 2009.


  3. awiessner says:

    Here is an update. I might add it is not highly publicized. This is all about new hires only and provides “some” relief to small businesses for a short period of time, employees recieve no tax relief but do benefit in gettin a job from this government program.

    Payroll Tax Forgiveness
    If you hire an “eligible worker” now through the end of this year, you’ll qualify for a waiver of Social Security taxes on their pay. This is a savings to you of 6.2 percent on wages up to $106,800 for the year, or a maximum of $6,621 per eligible new hire.

    Eligible workers. This includes anyone who begins work with you after February 3, 2010, and before January 1, 2011, and who has been unemployed for at least 60 days before the date the employee begins working for you. The new worker can’t displace a current worker unless that worker separated from service voluntarily or for cause. The payroll forgiveness does not apply to a worker who is related to the employer or who owns more than 50 percent of the business.

    The new employee can be a full-time or part-time worker; there is no minimum number of hours to make the employee an eligible worker. The worker must certify to you that he or she has not been employed for more than 40 hours during the previous 60 days. The “new” employee can be a former employee who was laid off as long as the unemployment time has been met.

    Coordination with the Work Opportunity Tax Credit (WOTC). Employers who hire certain disadvantaged workers can obtain a tax credit. In most cases, the credit is 40 percent of the first $6,000 of wages, or $2,400. There is no limit on the number of workers that create a credit for you. If you want to claim the WOTC, you’ll have to make an election not to have the payroll tax forgiveness apply.

    Mechanics of payroll tax forgiveness. For wages paid on April 1 or later, you simply do not include what would have been required employer contributions for Social Security taxes when you make your payroll deposits. For wages before this date, employers can claim a credit for Social Security taxes by reducing their tax deposits for the second quarter.

    Impact on employees. New employees have a job; they don’t receive any tax breaks which instead go to employers. However, they don’t lose out on the employer share of Social Security taxes paid on their behalf because the federal government will make appropriate transfers to Social Security to cover the payroll tax forgiveness.

    Retained Worker Credit
    Adding a new worker to your payroll not only frees you from Social Security taxes, you also qualify for a tax credit if you keep them on the payroll for at least 52 consecutive weeks. The credit is the lesser of $1,000 or 62 percent of wages paid during the 52-week period. In effect, any new employee who earns more than $16,130 during the 52-week period would entitle you to a full $1,000 tax credit.

    Because a new worker needs to work for a year, the credit won’t be claimed until you file your 2011 return; the credit won’t reduce your 2010 tax bill. If a new worker voluntarily leaves the job before the end of the 52-week period, you won’t be eligible for the credit.
    There is no limit on the number of new employees you can hire and for which you can claim these tax breaks.


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