Skip to comments.Huge 25% hike for small businesses kills New York jobs
Posted on 04/04/2010 6:06:43 AM PDT by AtlasStalled
America's jobs growth engine is being choked to death.
A record 25 percent increase in the taxes against US small businesses -- from costs associated with new health care law, to an increased Medicare tax, increased capital gains taxes and higher state and city taxes -- is repealing any ability of these entrepreneurs to add jobs to their payroll.
And the numbers for New York's small- to medium-sized business are just as harrowing.
By one estimate, the effective tax rate on the 26 million small businesses across the country -- which in the past have accounted for more than half of the job growth in the US -- has jumped to 50 percent from 40 percent, sucking valuable cash from the businesses.
These dollars could have been used to add to payrolls or make capital improvements -- but instead will be siphoned off by Uncle Sam, state and municipal governments.
"The impact of these higher taxes and reduced hiring will be a recovery cycle that will be much longer, be slower to take hold and be without much job growth," said Al Angrisani, founder and CEO of Angrisani Turnarounds and former US Assistant Secretary of Labor under President Reagan.
(Excerpt) Read more at nypost.com ...
If a group sat around a table and plotted on a way to bring down this nation they could not be more effective than the morons we have for elected officials.
I agree completely.
Add in all of the other costs of running a business and it simply isn’t worth it.
They did and are continuing to plot that goal.
$70 billion in wealth left the state of NJ last year because of a sizable one year state state surcharge on those making $400,00 or more (probably a lot of small business owners). Christie has vowed not to sign renewal of the surcharge and is facing a huge uphill battle over this with legislature.
They think people are going to just sit idly by and take it, but people vote with their feet and $70 billion worth of feet have just marched clear out of NJ.
NY IS IN DIRE NEED OF REGIME CHANGE!
How’s that third term working out for you, Mayor Bloomers.
I was talking to a small business owner the other day and found out these facts about the new HCR. First, it is in the interest of the small business owner to keep his payroll under 50 employees. Below that, you aren’t subject to the regs. And if you can whittle down your payroll to 25, then the gov’t rewards you with some sort of tax credit for providing healthcare (which this particular business owner does anyway.) Both policies are demotivators to new hiring and new job growth.
“If a group sat around a table and plotted on a way to bring down this nation they could not be more effective than the morons we have for elected officials.”
Why do you say if? That is in fact what they did and have been doing for most of my lifetime. They are not actually morons, they are people of varying intelligence, some of them score quite high on the IQ scale and they are accomplishing exactly what they set out to do! They are people who have chosen evil and they were described perfectly by Ayn Rand, you know that woman who has the “sophomoric” writing style according to all the critics who don’t know the tenth of what she knew.
S-corps are simple structures that are taxed based on personal income, so now with the pro-growth and investment Bush tax cuts expiring, the small business job engine will get hit with punitive "progressive" taxes since they're evil rich (job providers), the AMT tax accelerators will wipe out a ton of cash preserving deductions, and now they'll be forced by the IRS into new, democRATis approved health care policy expenses, plus all of their savings and investments will be subject to new Obamacare taxes.
Keep in mind, this is all before card-check, cap-and-tax, new financial regulations, and amnesty for illegals who get "free" health care and education for everyone in their family who haven't contributed a dime to pay for these entitlements. We'll be looking back 2 years from now to the good old days between 2008 and 2010.
Welcome to Ubanga’s communist America.
In the USSR, the people who joined the communist party got all the good jobs and govt. perks. Under our present one party system, if you are in the democRat party, you get the highest paying non-productive jobs, highest benefits, lifetime employment, all at the expense of the private sector.
You hit the nail on the head, brother.
I think they did sit around a table and plot a way to bring down this nation.
I say if because i don’t believe all are bent on destroying our way of life. Most are simply pretty damn stupid. How many people think islands tip over?
So I should cry a river for blood-sucking rude crude it's-all-about-me lib-loving nasty 'Bama-voter NewYawkers for getting exactly what they voted for? Go eat your welfare, folks, and party it up on them subways.
The coming Obama DEPRESSION will be worse than The Great Depression!
At least everyone has free health care. /sarc
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