President Obama Urges Payroll Tax Cut Extension

After Congress returns following the Thanksgiving holiday break they will decide if they are going to extend the payroll tax cut that benefits middle and lower income individuals and families.

President Obama gave a speech in New Hampshire urging members of Congress to extend and expand. This measure has been previously rejected by Republican Congressman as part of a larger jobs bill.

For individuals making $50,000 annually, the extension of the payroll tax cut would put an additional $1,000 in a family’s yearly income. The President asserts this money could help the economy by allowing people to have money to spend, since consumer purchasing is almost 70 percent of the overall economy.

Taxes have been the primary debate as the government grapples with how to balance the budget. Democratic Congressmen have called for tax increases on millionaires and billionaires in the effort to reduce deficits and Republicans are refusing to allow this to pass. There is still no general consensus on which tax increases and tax reductions are acceptable. Economists, tax lawyers and politicians have all weighed in and offered their solutions.

Small business owner can consult with a tax attorney to determine if these payroll tax cuts, if passed, can be beneficial.

Small businesses are the one of the primary job creators in the country. A tax lawyer can outline the different ways in which they can take advantage of the tax code and grow their businesses.