No $1,000 Handouts, End Payroll Taxes!
As a small business owner, I don’t need a $1,000 handout. This is a gimmick—let’s instead focus on solutions tailored to the problem. I need the tax relief of suspending the payroll taxes I and my workers pay.
Some math—my workers are all being paid their normal salaries for the foreseeable future, despite trials, depositions, briefs, client meetings being delayed for months. But even if their hours or salaries were cut, I’ve already paid unemployment insurance for them.
Unemployment insurance is for this purpose and California has made it clear that decreased pay qualifies you for relief. What about the self-employed, you say? They pay federal payroll taxes which the federal government should suspend and provide a tax credit for any income shortfall.
Working but not paying any payroll taxes (including myself) (i.e., working under the table)? This person has already been benefiting from the system. This is the person who a no-questions-asked dividend would benefit and not be redundant. But I have some questions . . . . Though maybe now is not the time.
Back to my first point, employers who keep their workers largely or fully employed are suffering a hardship right now and tax relief would help. Their workers may suffer no hit at all. And if they do, we have already paid the taxes for that!
Not working at all in a full-employment economy, but you want a check for $1,000? We have questions about that too. We should make sure we are providing shelter and food for the homeless/people in dire straits, but I question handing out checks to all people with no showing of need.
Before you @ me, I don’t want to see anyone or business suffer harm due to this virus. I do want government responses to be rational and tailored, not opportunistic policy gimmicks. Let’s start with existing framework/resources, remove red tape/waiting periods, and work together.
Republished from the original twitter thread.