2% Decrease on Payroll Taxes?

[zeros]

Not sure what this is? Are they going to lower our income tax rates by this amount? Can anybody explain this?

[KBTS]

Compromise

I believe you are referring to the compromise between the President and Republicans over the expiring "Bush Tax Cuts". Part of the proposal is a 2% reduction of the employee's SS tax rate for the 2011 year. I read this is designed to take the place of the Making Work Pay Credit.

Of course, all this would have to be passed by both the House and Senate before going into effect.

[BOB W]

That is my understanding also. Don't hold your breath?????????????????????

[JohnH]

'Don't hold your breath"...

That's the same thing I told my wife this morning when she heard something about it on the radio and asked me.

She replied that she will ask her hairstylist this afternoon and let me know what she says, just so I can be better informed about the matter.

[MAMalody]

I thought the reduction was on the employer's side?

[taxmandan]

I thought the reduction was on the employer's side?

Nope, it's only on the employee's tax rate, at least so far that's the plan. Subject to further negotiations, compromise, posturing, bipartisan bul*#% uh, well, you get the idea.

[taxea]

'Don't hold your breath"...

That's the same thing I told my wife this morning when she heard something about it on the radio and asked me.

She replied that she will ask her hairstylist this afternoon and let me know what she says, just so I can be better informed about the matter.

I'd love to know the stylist's source....

[JohnH]

I don't know her source(s), but she is a highly-trained professional.

[taxxcpa]

Payroll tax decrease

As I read it, I would get a payroll tax decrease if my AGI was at a fairly low level. But if I have a small amount of "earned income" accompanied by interest, dividends, IRA withdrawals and social security which raises my AGI, I get nothing.

[OtisMozzetti]

As I read it, I would get a payroll tax decrease if my AGI was at a fairly low level. But if I have a small amount of "earned income" accompanied by interest, dividends, IRA withdrawals and social security which raises my AGI, I get nothing.

I thought that any employee's share of Social Security tax simply is proposed to be lowered from 6.2% to 4.2%. I guess there would have to be a similar reduction in self-employment tax.

[Bees Knees]

She replied that she will ask her hairstylist this afternoon and let me know what she says, just so I can be better informed about the matter.

Ask your wife to ask her hairstylist what the 2011 tax rates are going to be, and if all the extender bills are going to pass.

[BOB W]

I thought the reduction was on the employer's side?

The Employer side reduction has to do with the New Hire program; the proposed reduction has to do with Employee.

Just what you younger workers need,,,,, cut back on SS funding.

[origun]

What about self-employed?

If employees will be paying 2% less for SS, will the 15.3% SE tax be reduced by 2%? It would seem logical but haven't seen anything about in news articles.

[BHoffman]

Self Employed = Red-Headed Step Children

[JohnH]

Her next appointment isn't until after the first of the year. Sorry...