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Economist Mark Zandi Supports Payroll Tax Fairness

Monday, July 11, 2011

For Immediate Release: Contact:  Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

Policy Roadblocks Stiffen Economic Growth for Small Businesses

 

Washington, D.C. – As Congressional leaders race to address the debt-ceiling limit deadline, Moody’s Analytics Chief Economist Mark Zandi signaled his support for extending the payroll tax break to both employees and employers to help boost the economy in light of Friday’s disappointing unemployment report. 
On CNN’s Situation Room, Mark Zandi commented:
“Well, I think there's some things we should do. Yes. For example, we have a payroll tax holiday, 2 percent this year. It expires at the end the year. Probably would make sense, given the context of these job numbers, to extend that [to employees] for another year. There's also some discussion about providing a payroll tax holiday for employers. That may also be something to consider.”
“I could not agree more that extending the payroll tax break to employers will provide much needed relief to business owners, including those who operate as both employee and employer,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE). “America’s smallest businesses – the self-employed and micro-businesses with fewer than 10 employees – are still struggling as the economy continues to falter. Policy makers on both sides of the aisle must put politics aside and use the payroll tax break to help the self-employed stimulate economic recovery.” 
In addition, Kristie Arslan appeared on MSNBC’s Your Business this weekend to discuss economic optimism within the small business community. She argued that the self-employed community – which represents 78 percent of the small business sector – is optimistic about the economy, but not optimistic about our government’s ability to make tough decisions. 

The self-employed contribute to the payroll tax through their self-employment taxes, paying the same amount as the combined employee/employer FICA contribution. The 2011 Obama tax cuts gave the self-employed a break on the employee half of their self-employment tax liability, but Congress will need to specifically include them in the current deal to ensure they get a break on their employer half, too. Arslan recently penned a Huffington Post piece on the benefits of a payroll tax break to the small business community.  



About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org.


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