Skip to comments.The Big Tax Increase Facing Small Business
Posted on 06/11/2010 9:28:17 PM PDT by mlocher
While a possible increase in taxes on the "carried interest" of hedge fund and private equity money managers is getting all the attention, in the same bill Congress is also creating a tax mess for small-business owners in the form of an $11 billion tax hike over the next 10 years.
The tax increase was included in H.R. 4213, a peddler's wagon of legislation (new spending, physicians' reimbursement, extensions of expired tax breaks, etc.) that was passed by the House in a narrow vote just before Memorial Day and is now being considered by the Senate. The Democratic-backed Senate version of the bill includes the same tax on small business.
The tax hit affects the owners of small S corporations (a common way many small businesses are organized) in "professional service businesses"--doctors, lawyers, accountants, engineers, architects and so on. An S corp pays no taxes but passes through all its profits to its owners' tax returns, even when those profits or "distributions" are reinvested in the business.
(Excerpt) Read more at forbes.com ...
...so all you small business owners who lectured me about the wisdom of voting Obama, where are you now? :)
Forbes helped to elect Obama. He has had Obama’s closest advisor writing articles for years. This fellow, a lousy money manager, got rich writing for Forbes. Forbes su*ks.
Add this to the IRS plan to mandate issuing 1099s to anyone your business pays or pays you over $600 and you may as well close your doors.
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