Not really a payroll tax “holiday”. Warren Buffet’s barber should have asked to be paid in shares of Berkshire Hathaway. I’m glad to see Virginia Tech and Radford haven’t made this list.
Beginning September 1st, companies now have the option of deferring their employees’ portion of federal payroll taxes for the rest of 2020. This works out to 6.2% more in paychecks.
However, this is essentially a short-term loan. Unless lawmakers pass the required legislation to make the deferral permanent, employers will have to recover that money by withholding an additional 6.2% from paychecks for the first 4 months of 2020. In my conversations with business owners, I haven’t heard of any that will be doing this. It will be interesting to see how many businesses will actually implement.
Warren Buffet and the $300,000 haircut (Wall St. Journal)
I’ve known about compound interest for 35 years and in many ways it still seems like magic. Here’s an article which talks about how a young Warren Buffet would use this principle to decide whether it was worth spending money on something, such as a haircut.
Another interesting factoid is that he’s made 90% of his wealth after the age of 65. Not a bad way to spend retirement! : )
Here’s one top 10 list you don’t want to see your alma mater make.