If politicos and pundits are going to keep up the incessant attacks against “tax breaks for millionaires” and “tax cuts for the wealthy,” we’re going to continue to repeat the reality: More than 70 percent of manufacturers file as individuals under the U.S. tax code and could be hit by higher taxes if the 2001 and 2003 rates are allowed to expire.
That’s just a trade association spinning? Well, consider these owners of small businesses across the country, speaking from knowledge of their businesses and personal tax status. (Thanks to the office of soon-to-be Speaker of the House John Boehner for compiling these accounts.)
- “If the tax cuts went away, [W. Shane] Reeves [co-owner of Reeves Sain drugstores] would have had to pay more in personal income taxes on his company’s profits. That would’ve affected plans to invest in information technology, add more space and expand the company’s delivery fleet. ‘Overall, the environment we’re all in right now has got everybody nervous,’ Reeves said. ‘But with (expiration of) the tax cuts looming, it just felt like it was going to get worse.’” (The Tennessean, 12/9/10)
- “For small business owners, the uncertainty and stakes are even greater. … It takes capital to run a business, said Tom Mercier, owner of BOPI, a 60-employee printing and marketing logistics company in Bloomington. … With printing industry margins only in the 2 to 3 percent range, higher taxes complicate decisions on whether to give pay raises, and how to cover rising health care costs, he said. … The tax cuts are a hot topic for business and individual clients at Henning, Strouse, Jordan and Stephens, a tax and accounting firm in Bloomington, said managing member Mark Nicholas. He said months of uncertainty — a bipartisan agreement was roughed out Monday — have delayed important decisions by businesses: Can we expand? Can we buy new equipment? Can we hire? ‘People are definitely holding off on the answers to those questions,’ Nicholas said…‘The uncertainty — that’s the real problem.’” (The Pantagraph, 12/8/10)
- “In Fort Myers, Rustin ‘Rusty’ Je Read More