I am listening to Sean Hannity on his radio talk show. He just said Biden, today, lowered the amount of money from $250K to $150K that we will be allowed to keep. How can anyone run a business and make payroll on $150K.
"make payroll on $150K"
that's a funny way of saying something or other.
Do you mean how can they do the payroll when taxed 39% on income > $150k
in the UK it's 40% income tax at > £32K. (about $65k)
So, FAR worse.
But the way it's worked out is this is on taxable income.
In the US it may be the same.
I'm not sure about this but I think payroll is set against that. If that is the case, then any income payed to staff would not be (excuse the expression) income taxed. Or to use the british tax jargon, "it's tax deductible".
i.e. that figure is deducted from the income that is taxed.
Businesses still lose a huge amount of their profits though, to income tax, and it's very unencouraging for them.
The Govt have other taxes instead of income tax, to put on staff salaries! I'm not sure but I think income tax is irrelevant to it, to the payroll.
changes in income tax won't really stop them paying their staff. not directly anyway. Some indirect ways it may stop them is they may say too much work for too small a gain, screw it, why bother, i'll hire less staff. Or, I won't run my own business, and won't hire any staff. I'm not very erudite on this subject though. There are a few others here that would know better