Could Employers Soon Experience a Payroll Tax Cut?
According to a an article posted yesterday on Bloomberg, President Obama’s advisers have discussed cutting payroll taxes that businesses pay on wages as a way to aid in the economic recovery process.
Although this idea is in it’s infancy stages it is only one of several being discussed as options for fueling the dwindling economy. “In an analysis released shortly after the December 2010 tax-cut deal, Deutsche Bank Securities economists Joseph LaVorgna, Carl Riccadonna and Brett Ryan estimated that the employee payroll tax cut would boost gross domestic product this year by an additional 0.7 percentage points.”
We’re asking employers: If you were required to pay less payroll tax, where in your company would you reinvest those funds? New jobs? Benefits for current employees? Updating company technology? R&D? Please weigh in.