What “Payroll Tax Holiday”? I, and my company, must have missed the memo. Taxes are eating me alive.
In 2011, the social security tax was reduced by 2%. A blatant attempt to bribe working nontaxpayers. I never understood how reducing the social security payroll tax could be considered a good thing. It put more money in working persons’ pockets but also deprives the social security trust fund of much-needed money. Obama is not as dumb as he looks and acts. This is a two-fer - bribe the working “poor” AND hasten the disaster of social security going broke. And now he is saying we should continue this for another year. Who will ask him how that “payroll tax holiday” affects social security funding? Why isn’t that brought up by the republicans?
This is all so silly. But Rightonline we have been paying 2% less to soc. sec. this year, I hope you did your withholdings correctly.
However, it is only the WORKER’S portion that was reduced. I don’t understand why anyone thought that was going to create any jobs.
They should have reduced the EMPLOYER share or at the very least split it.
If the EMPLOYER got to save 2% of their entire payroll tax cost that might have added up to enough money to make some new purchases or investments. Just giving each EMPLOYEE 2% more was probably not enough to make a difference to anyone.
I actually encouraged people to put the 2% into their 401(k), but most of our staff is so tapped out nobody is even contributing any more.