Today’s Quiz:
Q1. Do you have “household income” over $250,000?
Q2. If yes, do you feel “wealthy”?
If you answered “yes” to the first question, but “no” to the second, you may be a small business owner.
Congress continues the debate to raise taxes next year on the “wealthy”. Their definition of wealthy seems to be families with “household income” over $250,000.
And that could be a jobs killer.
A 2009 report from the U.S. Small Business Administration tells us that small firms represent 99.7% of all employer firms, employ over 50% of all private sector employees and have generated 64% of net new jobs over the past 15 years.
Where are we going with this?
Most small business owners are organized as proprietorships, partnerships, LLCs or “S Corporations”. That means the business income is taxed on the owners’ personal returns at the individual tax rates.
So that “household income” over $250,000 may actually be from a small business.
Raising taxes leaves less for small business to invest, whether it’s investment in new equipment, new technologies or new hires.
So why raise taxes on small business with unemployment near 10%?
Our PSA to Congress tomorrow.
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