The Washington Post took issue with a comment Speaker John Boehner made on the fiscal cliff where he was attempting to characterize the impact of tax hikes on small businesses. While frank discussion on the impact of raising tax rates is welcomed, the discussion cannot be had without mentioning this: Two-thirds of manufacturers are S-corps and pay taxes at the individual rates. Their average income is $384,000 so they most definitely will be affected and in a significatly negative way.
And, as a result, that impact will be felt up and down the line – from investment, innovation, and job creation. It may seem like old news but it’s worth repeating – small and medium sized manufacturers use that money to turn around and grow their businesses. The more money they have to send to Washington comes directly out of investment and
With the fiscal cliff only 21 days away, it is critically important that Washington policymakers have this fact front and center as they continue to negotiate.