Job Creators Network member Kelly Brozyna, who’s spent 25 years advocating on behalf of small business owners and their employees, testified at a hearing of the House Ways and Means Committee Thursday and warned that the Democrats’ Social Security 2100 Act would dramatically increase the payroll tax and devastate job creation.
“This proposal would raise the payroll tax over several years by 2.4 percentage points to 14.8 percent of earned income,” Ms. Brozyna testified. “On the surface, this seems like a small tax increase, but it would take a painful bite out of the incomes of entrepreneurs, workers, and small business owners…Small businesses are the backbone of the economy and our society. We need to support creative entrepreneurs and help them make their dreams come true, not burden them with tax increases that will only stunt entrepreneurial growth and creativity and reduce our living standards.”
Writing in Real Clear Policy, Brozyna argues that the Democrat-backed tax hike puts unnecessary pressure on America’s 90 million small business owners and “places a major hurdle between them and their dream.”
“Established businesses will respond how they always do when faced with new taxes: They’ll hold off on hiring, reduce hours, hire contractors instead of employees, and increase prices — or some combination of these,” she writes. “Some businesses on extremely narrow profit margins will even have to cut staff or close altogether.”
The Heritage Foundation notes that the Democrats’ Social Security 2100 Act would “raise payroll taxes for all workers. An average worker with an annual salary of $50,000 would pay an extra $1,200 per year.”
Read Brozyna’s article here and read the Heritage Foundation’s report about how the Social Security 2100 Act would impact your income.
Follow Jerome Hudson on Twitter @jeromeehudson
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