In 2010, the U.S. Congress cut the Social Security payroll tax from 6.2 percent to 4.2 percent for 2011 as part of a compromise between the president and congressional Republicans. This temporary reduction in Social Security payroll taxes is due to expire at the end of the year.
After 42 years of building an immense real estate and time share company, with 7,000 employees and revenues of $1 billion, its owner is close to giving it all up and, in his words, “calling it a day.” David Siegel, the owner of Westgate Resorts, started his company out of his garage in the early 1970s and, working full time including weekends and holidays, slowly built the company into a powerhouse which, in 2007, just before the real estate crash, employed more than 12,000 people and served more than 3 million customers a year.
But the start of the Great Recession left Siegel and his company with nearly $1 billion in debt which forced him to give back the Las Vegas project to lenders and stop work altogether on his massive 90,000 square-foot home.
Business is better now, but Siegel is nervous about the election and what it means to his company if President Obama is reelected.
The U.S. economy grew slower than previously reported during the second quarter of the year, according to the U.S. Bureau of Economic Analysis (BEA). The economy grew at just an annualized rate of 1.3 percent rate, down from the 1.7 percent growth previously reported.
The anti-tax foundation Americans for Tax Reform has labeled the end of the Bush-era tax cuts that are scheduled to expire at the end of this year — in conjunction with the start of new taxes, such as those brought on by ObamaCare mandates — "Taxmageddon," but would the tax increases built into the law by Congress actually be a catastrophe for the economy, keeping in mind that automatic spending cuts are set to begin as well?
To hurdle the federal government’s looming “fiscal cliff,” Congress and the president must enact a combination of higher taxes and spending cuts, says a group of business economists.