> George Merrell
>
> PO Box 1668
>
> Wickenburg AZ 85390
>
> To whom it may concern,
>
> I am a small business owner in Congress AZ. I have been running a Café
> in that community for about one (1) year. I would like to discuss a
> matter with you concerning the Social Security and Medicare Tax that
> is due on the 15^th^ of each month. As previously stated I have a
> small business that employs about nine (9) people. My Social Security
> tax plus the Medicare tax for those nine employees varies from
> \$3,000.00 to \$1899.30, which was paid on the 15 of each month. It is
> little wonder that small business go under with that kind of tax
> burden placed upon them. My monthly sale for this month is approx
> \$15,000.00. As you can see taxes are high due to way they are tax is
> figured. This payment is calculated as a result of Gross Wages
> including Tips times .153% plus Federal Tax for the month including
> Medicare. In addition I have to pay a Transaction Privilege Tax (TPT)
> for the county that I have my business that is .0654 % of net sales
> for the previous month. My tax rate for these the two taxes come to
> .2184% of my total income, which equals \$3276.00 for the month or
> approx. 20% of sales and does not include Federal Unemployment Tax
> (FUTA) or State Unemployment (SUTA). This is not a true picture of the
> activity that is currently being conducted for the present month.
> These figures are a result from the previous month. Although those
> employees are gone the burden of their presence is still felt through
> the way that the tax process figures. It is hard to sustain the
> financial loses of that magnitude without running into financial ruin.
> So this is a Letter of hope!
>
> As an example, a friend of mine received a report from the Social
> Security Department stating that when she reaches retirement age she
> will then be able to receive \$600.00 a month for their benefit. Can
> you live on \$600.00 a month? I can't. It appears to me that when the
> Social Security Act came in under President Roosevelt's Administration
> that it may have been a good deal (New Deal) but its' time has come
> and gone. Maybe \$600.00 a month would be a good monthly payment in
> 1933 but it leaves a lot to be desired in this day and time. The
> reason I have presented this example to you and you hopefully will see
> that the Social Security Tax and Social Security itself have come and
> gone the way of the Edsel. This country was built on the individual
> and their ability to do for his/herself selves I do believe that
> although the rate charges for the employer (6.2% for the individual
> and matched by the employer for a total of 12.4%) may be fine for a
> big industry or a large business it should be lower for a small
> business or eliminated all together and allow the individual to decide
> what is best for their future. There are 401K, CD's, Bond, and the
> stock market that would allow the individual to chart their own
> financial course without the government being involved. Although this
> sound like I am anti-tax it is not true. I believe is paying Federal
> Income Tax but the burden that is placed upon the small business owner
> with few employees and the expectation to match up with large
> businesses and industry and maintain the level for these taxes is not
> realistic. I know that this is not reality because this would be
> discrimination but hopefully you see that something needs to be done
> for the small business owner. I believe that I speak for the majority
> of the small business owners that are devoted to trying to make a go
> of their dream. Sir, thank you for your time and interest in listening
> to my concerns.
>
> Respectfully,
>
> George Merrell