As 2011 comes to a close, so does the payroll tax cut for millions of Americans. If Congress does not come to an agreement, we'll start out 2012 by paying higher taxes. This fact has a greater impact on the 22 million self-employed and micro-business owners who, in an open-letter, urged both the President and Congress to consider impacts on their sector of the economy as cuts are made to reduce the federal debt by $1.5 trillion. The self-employed play the role of both the employer and employee, which means they are responsible for paying both portions of the payroll tax. In a cruel twist, the entrepreneurs who are trying to jump start the economy are, in effect, taxed twice for their efforts.
Now is the time for our policymakers to put politics aside and implement clear economic actions that will move our economy forward. Our nation's smallest businesses are waiting for our leaders to make the difficult decisions. A payroll tax holiday for the self-employed and micro-businesses will help with adding another phone line, conducting online advertising or covering the cost of a seasonal employee.
Taxes are just one item on a long list that those seeking self-employment must be aware of in their daily operations. Learning all the details of small-business ownership may seem overwhelming, but there are resources available to navigate the essentials. Extending the payroll tax cut is a step in the right direction towards an improved economy in 2012 and beyond. With money saved, small business owners can seize the opportunity to market and grow their businesses throughout local communities. Continued payroll tax cuts -- aligned with the tenets of the National Self-Employment Initiative -- will help small businesses rev up the economy and spur some of the nine million unemployed to embark in entrepreneurship.
Follow Kristie Arslan on Twitter: www.twitter.com/klarslan