City moving forward with payroll tax increase
by Hawkins Teague
Oct 17, 2007 | 0 0 comments | 5 5 recommendations | email to a friend | print
The Cadiz City Council voted at their Oct. 2 meeting to move forward with a city payroll tax increase of a half-percent. If passed, the increase would take effect next year. Although it is still early, reaction from the city’s largest employers seems so far mixed.

“Sometimes not saying anything is the best thing,” said Joe Stone, the plant manager of Stone Plastics, which currently employs 125 workers. In 2006, the company’s workers paid just under $25,000 in payroll taxes. With the proposed increase, that number would have been about $37,500.

Ernie Baker, the general manager of American National Rubber, said the company would not take an official stance on the matter since it is a personal tax in individual employees. He said, though, that the increase would certainly take several cents out of employees’ paychecks every hour. He said that ANR’s highest number of workers in 2006 had been 160, though it is about 115 now. He said that ANR workers contributed about $30,000 in payroll taxes in 2006. He said the plant hoped to grow a little in 2008, but expected that the workforce would remain relatively stable. If the number of employees stays the same in 2008 as 2006, the city would take in $45,000 from ANR employees.

Donnie Holland, president of Benson International, Inc.’s Cadiz plant, said that Benson employees paid $25,000 in payroll taxes in 2006, but said that there weren’t as many employees in the first half of that year, since it opened in January 2006. He said there are currently 150 employees and he estimated that they would pay $72,000 next year with the half-percent increase. He said he hadn’t heard any reaction from employees yet about the proposed increase, but noted that it was still pretty “new news.”

More businesses react to the tax increase- read about it in The Cadiz Record.
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