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What $40 Means to Small Business Owners, Employees, and Customers: The Importance of Extending the Payroll Tax Cut

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What $40 Means to Small Business Owners, Employees, and Customers: The Importance of Extending the Payroll Tax Cut

By Karen Mills, Former SBA Administrator
Published: December 22, 2011

Yesterday, I spoke with Zalmi Duchman, the founder and owner of The Fresh Diet in Florida.  His business cooks and delivers freshly prepared, healthy meals directly to customer doors each day.   

He talked about how, if Congress doesn’t act, a tax increase will hurt both his hardworking employees and small businesses, like his, that rely on consumers to have money to buy their goods and services.  He said that when his employees open their paycheck and see that it got lower, they’ll turn to him and ask why.

That really struck me.  I’ve traveled around the country talking with small business owners, and I know he’s not alone.  Small business owners think of their employees as part of their own family.  They know that an extra $1,000 a year means a lot to working families. 

Over the past two days, over 30,000 Americans have told the White House what $40 less per paycheck would mean to them, including many of the more-than-half of Americans who own or work for a small business.

Let’s be clear about what is happening in Washington.  The President called for this tax cut extension about four months ago.  Senate and House leaders finally came to an agreement last week, and the Senate passed a bipartisan bill – with 89 of 100 Senators in support – to extend the tax cuts.  And now, after the Senate has left, House Republicans are backtracking, causing uncertainty among America’s 27 million small businesses as they put the final touches on their business plans for 2012.

Next month, the Administration will continue to work with Congress to extend the tax cut through the rest of 2012.  But right now, the House needs to pass the two-month extension and provide a stable environment for small businesses.

I encourage you to tell what $40 means to you at www.whitehouse.gov/40dollars or tweet @WhiteHouse with the hashtag #40dollars.   That’s money that Americans could otherwise be spending on Main Street, giving a boost to our small businesses which create two of every three new jobs.

As we move into 2012, small business owners need the wind at their back, not in their face.  It’s unacceptable that Congress hasn’t acted on this to give them the certainty they need right now. 

America’s small businesses and their employees deserve better.

About the Author:

Karen Mills

Former SBA Administrator

Karen Gordon Mills is the Former Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.

Comments:

I run a pretty small business and to me, $40 means a lot because I am a stay at home mom and I have to work with less. So I'm sure $40 is really important to other people as well.
I agree with some of the other comments being made here. Every little counts for small businesses and any cost saving is important, especially in today's economic climate.
You are very right here and any tax cut is important to small businesses even if it does seem like a small amount. All of the small measures that are created to help small businesses add up to a whole lot more.
From one side, that's really huge money when speaking of small businesses. But at the same time what else should our government do in order to save the country from default scenario? If you ask me, I'd rather increase the payments from transnational corporations. They are 100% capable of paying more taxes and stay alive.
As a small business owner myself, I found this article to be very interesting. Our Naperville Limo business operates with 4-6 employees whom are on our payroll. If they received $40 less than they normally were paid then they would probably be upset, demotivated, or even quit. The government needs to find other ways to reduce spending costs and maintain these types of tax cuts for Small Business Owners.
The Government needs to learn to operate within a budget! Everybody else has to spend and operate within one or they go bankrupt and are foreclosed on. More taxes are not the answer, responsibility and sacrifice from the Government is part of the answer!
Interesting article. Many learned in August odszkodowania
Thanks for sharing your thought with us.You are very generous person and outgoing person. Tips is very well written and many useful information.

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