How would a payroll tax holiday help small business owners?
• A payroll tax holiday for both the employee and employer would immediately put money back into the hands of consumers and business owners at a time when economic activity has ground to a halt. • Providing payroll tax relief for the employer reduces the cost of labor, meaning that an employer is more likely to keep an employee on the payroll through tough economic times since the cost of that employee is reduced. • Currently, economic activity has slowed dramatically making it harder for small business owners to meet the regular costs of doing business and leading them to curtail their business plans and investments. • Recent data from the NFIB Small Business Economic Trends survey indicates the sales index for small businesses is at an all time low. • The slowdown in sales is having a broader effect on the overall economy: The SBET survey also shows historic lows in planning to hire, make capital investment and replace investment. How much of an impact would a payroll tax holiday hav
