(WASHINGTON, D.C.) – Following the announcement of an interim compromise between the House and Senate, Rep. Rich Nugent (FL-05) issued the following statement:
"Everyone agreed that a year-long extension of the payroll tax holiday was the more responsible option. That's what the House passed and that was what we were calling on the Senate to pass as well. It was clear, however, that they were seriously willing to let taxes go up on millions of working families before they came back to Washington to do the hard work of finding a compromise. It's a shame. It truly is.
"House Republicans took a stand for what everybody acknowledged was the more responsible public policy position. We chose the responsible path, even though it wasn't the politically expedient path. But instead of stepping up and doing the right thing, and calling on the Senate to work out a compromise with the House, the President decided to try to rack up political points by playing up the disagreement. That's not leadership and it won't put Americans back to work.
“We've insisted on a change to the Senate's bill that will minimize the damage of a two-month extension to small businesses. Our amendment to the Senate bill will ensure that small businesses will not face extra and unnecessary tax compliance costs as they try to keep pace with policy changes coming out of Washington. The Senate was gracious enough to agree to that change. In addition, Harry Reid has agreed to appoint negotiators and the hard work of compromise will finally begin in earnest over the next few weeks. It's about time. Putting Americans first should always be the priority. With this amendment, small businesses will be protected, as will millions of American families.”
Background Information Regarding the Problems Facing Small Businesses in the Original Senate Bill (courtesy of the Speaker’s Office):
- • “The Senate bill would require extensive new record-keeping, and multiple calculations of employees' wages, payroll officials say. … The two-month extension could increase tax-compliance costs for small firms, which already pay proportionately more than large businesses to comply with tax rules, said Kevan Chapman, a spokesman for the National Federation of Independent Business, a small-business group. Particularly for small firms that do their own taxes or rely on software, ‘it's just going to be very complicated,’ he said.” (The Wall Street Journal, 12/22/11)
- • “For payroll processors, the two-month option because of the $18,350 cap is the toughest to implement. … Many payroll systems may not be able to make all the needed changes in January, the [National Payroll Reporting Consortium] believes. And some may even struggle to get the job done by February.” (CNNMoney, 12/22/11)
- • “[Sherry Dwyer, software support manager for Brentwood-based Optimum Solutions] said it is the worst possible outcome for companies like hers. … Software vendors, she said, will be forced to ‘drop everything’ to implement the changes. Further complicating matters is that not all of a company’s clients are on the same pay schedule, so changes will have to be made in waves. ‘It’s going to be a nightmare,’ Dwyer said.” (Nashville Business Journal, (12/22/11)