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SMALL BUSINESS BACKS FULL DEDUCTION OF SOCIAL SECURITY PAYROLL TAXES

The 600,000 member National Federation of Independent Business has announced its support of "The Working Americans Wage Restoration Act," which would allow the self-employed and small-business employee to fully deduct their share of the Social Security payroll tax.

"Small businesses are hit hardest by the expense of payroll taxes because they are more labor intensive than larger businesses," said Dan Danner, NFIB vice president of Federal government relations. "As a result, the majority of small-businessowners pay more in payroll taxes than in any other form of tax. And Americans are being taxed twice--once when the Social Security tax is taken out of their paycheck and again when they pay the income tax.

A recent NFIB survey found that 73 percent of small businessowners favor full deductibility of payroll taxes.

Under current law, an employer's share (6.2 percent of wages) of Federal Social Security payroll taxes (OASDI) is deductible while an employee's share (6.2 percent of wages) is not. The self-employed currently pay a self-employment tax and can only deduct half of the 12.4 percent they pay against their income taxes. *



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