A New 8.25% Payroll Tax

States have been doing a lot of complaining that they are losing sales tax revenue to internet sales. They are working to get congress to pass a national sales tax that would collect this supposed loss of tax revenue. Never mind that the states lost this revenue in the 1700s when the US constitution made it illegal for states to tax interstate trade. What is really at stake is another employee tax. Employees are familiar with the Medicare and Social Security withholdings. More and more employees are seeing sales tax added to the list. If you do your job from home in Texas and do any of the work through the computer be prepared to add sales tax to the list of taxes to subtract from your paycheck. (I called the tax office and confirmed this). White collar jobs have seen a trend from working directly for companies to being contract. Now contract jobs are moving to day to day work similar to day laborers. Instead of waiting on the curb we wait for an email. Not only do you no longer have any benefits like health care but be prepared for more taxes. Unfortunately unlike Social Security this payroll deduction makes no promises and provides no services.