California places 8% surtax on payroll deductions

[Pliny]

California tax increases

* A new jobs-killing payroll tax on small businesses who can’t afford health insurance. If a small business in California cannot afford health insurance, they are going to be socked with a new 8 percent payroll tax. This is on top of existing payroll taxes for Social Security, Medicare, and unemployment. It’s also on top of federal income taxes, the self-employment tax, property taxes, and taxes paid to California

Is it the end of Mom and Pop businesses and the flourishing of fascist corporate cartels?

[bush_cheney2004]

....Is it the end of Mom and Pop businesses and the flourishing of fascist corporate cartels?

No....it is the beginning of new Mom and Pop businesses in Nevada and Arizona.

[KeyStone]

The public is so easy to deceive, it's almost laughable.

They are so fixated on business tax, that payroll tax doesn't even get a mention.

In actuality, it's a payroll tax that is going to drive businesses under, far more than an income tax.

Income tax only kicks in, if a company is profitable - after all wages, expenses, COGS and re-investment is paid.

Payroll tax hits every business - even those breaking even or losing money.

If you really want to help businesses it makes much more sense to lower payroll taxes and increase income taxes.

[msj]

California will certainly not be the only state to raise taxes and/or cut spending.

Here's CNN's look at the worst 10 states: Ten most troubled states

Here's a detailed report looking at all the states: State Revenue Report [PDF]

[Pliny]

Well, I also heard today that public employees in California are facing a 15% cut in their wages. I guess when Arnold was in BC he took a chapter out of Campbell's book and tore up the employees union contracts.

My personal opinion is that public employees need to understand they are not immune to the devastation that government can create in the economy.

[Pliny]

The public is so easy to deceive, it's almost laughable.

They are so fixated on business tax, that payroll tax doesn't even get a mention.

In actuality, it's a payroll tax that is going to drive businesses under, far more than an income tax.

Income tax only kicks in, if a company is profitable - after all wages, expenses, COGS and re-investment is paid.

Payroll tax hits every business - even those breaking even or losing money.

If you really want to help businesses it makes much more sense to lower payroll taxes and increase income taxes.

Payroll taxes are the income taxes of the companies employees and are included in the employees gross wages. The employer remits the payroll taxes before the employee sees his paycheck.

I don't know what you are talking about - lowering payroll taxes and increasing income taxes??? They are both income taxes.

You are right that payroll taxes hit every business - every business that has employees, but they are simply a calculation of gross pay to employees. Higher payroll taxes means increased labour costs and layoffs; the only other option is lower wages for employees if they wish to keep their jobs.

[Pliny]

No....it is the beginning of new Mom and Pop businesses in Nevada and Arizona.

Or India and Indonesia.