CQ Politics reports on the NAM’s objections to raising taxes on Chapter S Corporations to finance veterans education benefits, an amendment in the supplemental appropriations measure to fund the war in Iraq.
Higher taxes on manufacturers means there will be less money for business expansion and job creation, including for returning veterans, according to NAM.
In an interview, Dena Battle, NAM’s director of tax policy, said today the group was disappointed that it passed. “We are very hopeful that this will be stopped in the Senate,” she added. Battle pointed out that small businesses, such as S-corporations or limited liability companies, pay taxes at the individual rate. “So any time Congress does something to increase tax rate or place surtax on individual incomes, then it hurts those businesses,” she said. “One thing that is unique to many small businesses is that it is all of their business income that is treated on their personal tax return, so you could have a very high number, but most of that amount is reinvested into the business and not profit going to the individual,” she added.
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