Social Security taxes are currently levied on all payrolls up to $147K annually. Under a new Congressional Proposal, that could change radically.
The House has proposed taxing all payrolls that are $400K and above. Think about how ridiculous that would be.
A worker is taxed from dollar $1 through $147K. Then not taxed from $148K to $399K. Then the Social Security taxes kick in again.
Taxing the rich is a popular topic in Washington at this point. The new administration’s budget proposal contains so many new taxes on wealthy entrepreneurs that they’re difficult to distinguish. All of it really comes down to one thing.
A disincentive for successful entrepreneurs to operate their businesses inside the states.
Given the transitory nature of business today, it doesn’t matter where many businesses are headquartered, let alone operated. Between the unions, labor prices, and property taxes, we have enough things going against us.
If these new proposals pass, how many entrepreneurs are going to be in a hurry to either start or keep their businesses here unless it’s absolutely necessary? We’ll see an exodus similar to one we had in Chicago after the riots.
We can only hope that this lunacy never gets signed into law.
Let me leave you with this.
I had a conversation with one of our multi-unit trucking clients Friday, that was incredibly alarming. It was about the price of diesel.
One year ago, the average cost of a gallon of diesel was $3.25. That price has increased over $2 in the last year to $5.29.
The problem is that the prices independents and trucking companies are getting for their loads haven’t increased to cover those additional costs. The losses are being incurred by the truckers.
What does all of this mean?
If you were a trucker having your profits eaten up by inflation, what would you do? You’s probably find another line of work.
This means that our supply chain issues are probably going to get worse.
Keep track of your expenses. Know where your profits are. If you need to raise your prices, get to it.
This mess isn’t over by a long shot.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.