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Originally Posted by aceventura3
Payroll taxes are a heavy burden on small businesses as well. In California, for example we have to collect Fed Tax, FICA, Medicare, Fed Unemployment Tax, CA. State tax, CA training tax, CA-SDI, CA unemployment tax. Get any wrong you are subeject to heavy penalties and interest. We do W-4's, W-2's, DE6's, 941's, 941's, W3's DE34's, and a few others forms that don't come to mind at the moment. It is ridiculous. It is a muti-billion dollar industry, not counting the time it takes from productive activities.
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Yes indeed, which is why payroll taxes are one that I would do away with. Let's face it, they amount to income taxes in that they are considered part of the cost of labor to most managers, but can't be offered to the employee. They are in that sense a hidden tax. Employees don't see them and so don't think of them as having been levied upon them, but in truth they are, yet of course the business has to take the burden of managing this seperate tax.
There isn't much that the Federal Government can do about state taxes, and so I confine my discussion to Federal taxes in this forum. I would support the same reform for my state, but I'm not familiar with enough with other states to say.