But their tax proposals will increase taxes on a majority of small businesses. Yes, 33% of sole proprietorships and 55% of S-corporations and partnerships will pay higher taxes starting next year.
http://www.atr.org/files/files/072610pr-smallbizrates.pdf
There were 30 million tax returns reporting small business income in 2008. On net (profits reduced by losses), these owners reported business profits of $981 billion. A large chunk of this net profit--$488 billion—faced taxation in households making more than $200,000 per year. A majority of small business profits will face a tax rate hike under the Obama-Pelosi-Reid plan.
And this will NOT be good for the economy.
Tax increases on that many businesses will make businesses less likely to hire or expand, and will have a further dampening effect on an already weak economy.
What MUST happen is for government to stop spending and borrowing so much money. Next, they need to stop levying new taxes and regulations on individuals and businesses. We do not WANT massive change after massive change... we want stability in our laws. Leave us alone.
Great post. Sadly, much to true. All my wife and I have is our small business and we can't afford to pay out another dime to the Government but we see the writing on the wall. More - More - More
ReplyDeleteI have been hearing from many people just like you, all telling similar stories. Unfortunately, the folks in charge don't really care about the reality of things unless that reality fits in with their expectations.
ReplyDeleteIt's sort of like a feeling of depression, you know? People see that Obama is raising taxes and adding regulations on whatever attracts his attention... and this is why consumer confidence is dropping. It's why businesses aren't hiring.