Meehan: 2 Month Tax Extension Hurts Small Biz

Congressman Patrick Meehan (R-PA7) who repressnts Easttown in Washington says the two month extension of a 4.2 percent payroll tax increase would take a huge toll on small businesses.

The Democrat-controlled U.S. Senate passed a bill to extend the current 4.2 percent payroll tax, which is scheduled to jump to 6.2 percent on January 1 unless Congress can reach a compromise that the president would sign. The Republican-controlled house voted on Tuesday to reject the bill and call on Senate negotiators to work out a compromise to extend the lower rate for 12 months.

Meehan issued a statment that says the two month extension passed by the Senate would add huge accounting expenses to already burdened small business people. “The Senate bill will also cause small businesses huge confusion and tax compliance costs. Just this morning, I heard from a local CPA who pointed out that the Senate plan will require two sets of quarterly tax forms and huge compliance costs for small businesses and taxpayers. It will cause further job-killing uncertainty, and payroll tax experts and small businesses say the two-month fix is unworkable," Meehan's statement reads.

Click on the video clip to see Meehan's one minute speech on the foor of the U.S. House.