Wednesday, January 11, 2012

Payroll Tax/ Reaching Small Business

Most of you I am sure have heard that the Mayor and Board of Supervisors will be looking for a way to change the payroll tax. Suggestions have been going to a gross receipts tax or some kind of hybrid with a payroll tax and gross receipts tax.

It seems quite clear that the City cannot lose revenues by this change and some are saying a change should bring in additional revenues.

What are your thoughts keeping in mind that less than 10% of businesses in SF pay the payroll tax? Do you think the tax should be made broader bringing in more businesses. Should there be any exemptions?

Tomorrow I am part of a panel that will be discussing the Exchange that is being developed in California. As you know the Exchange is being set up to respond to the Health legislation passed in Washington. It will be made available to small businesses in 2014.

The Exchange is basically a purchasing pool for small businesses with less than 50 employees and individuals. The tax credits available to small businesses will only be made available to small businesses and individuals that purchase coverage through the Exchange.

My question to you is what is the best way to reach small businesses with information about the Exchange?

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