Small businesses are scared.
And they have a right to be. With the threat of the Bush tax cuts not being renewed, small business owners across the nation may face an even higher burden than they ever expected.
From the Cincy Enquirer:
The fear is for small business owners who include business income with personal income, a common arrangement that would push them over the tax ceiling.
“There’s no incentive for me to grow,” says Loveland restaurateur Howard Shokler, who owns and operates five Penn Station subway shops, including one he took over last December. His five restaurants do less than $2 million in annual revenue, and his income puts him close to the $250,000 ceiling – dampening any urge to open another shop. He employs 112 full- and part-time workers.
“Everybody in the business world is scared about what taxes are going to do,” Shokler says.
Local tax experts say even the smallest businesses could be affected.
“When you stack the income from a business with the salary from the business that gets you into the highest rates very quickly,” says Scott Golan, a partner in the tax group with BKD accounting firm downtown.
The Joint Committee on Taxation, widely considered the go-to committee on tax issues on the Hill, recently estimated that the upcoming tax hike would effect over 50% of the small business income in the United States.
What’s even more frightening? That the Democrats would let it happen.
How this isn’t a bigger campaign issue is beyond me. All those currently elected to represent Ohioans in congress have a duty to their constituents to let them know where they stand on this pressing issue.