Tax changes aren’t limited to health care. The ”fiscal cliff” raised the marginal tax rate to 39.6 percent from 35 percent for single filers who earn $400,000, targeting a small minority of business owners who file as individuals, such as S-Corporations. Even with that tax hike, experts say the predictability of a permanent extension of the overall Bush-Obama tax cuts will be good for businesses.
Corporate income taxes are another thing to keep an eye on. Lowering them has bipartisan support, but the devil could be in the details of which loopholes are closed to pay for them and how broad overall tax reform should be.
A survey by The Wall Street Journal found that 35 percent of small businesses might reorganize as C-Corporations if the corporate tax were cut. Because S-Corps and C-Corps offer varying advantages, tax reform could compel many businesses to break out their green eyeshades.
A grab bag of other laws and initiatives includes:
Proposals to make permanent the research and development tax credit, provide 100 percent exclusion of capital gains on qualified small-business stock sales, and extend 100 percent expensing of capital equipment purchases
The JOBS Act of 2012, which helps startup firms that want to go public or attract ”crowdfunding”
Proposals to raise the minimum wage to $9 or more from $7.25, and index it to inflation
”Small businesses continue to drive innovation and job creation in industries across the country,” SBA’s Cain said. ”Our goal is to make sure these entrepreneurs have the wind at their backs and the access and opportunity they need to grow their operations, reach new customers and create jobs in our communities.”
Winner of the 2012 NGLCC Chamber of the Year Award and ranked No. 18 for Local Chambers of Commerce in the Washington Business Journal’s ”Book of Lists,” the Chamber means business. For more information, visit caglcc.org.
Matt Raymond is a CAGLCC member, a PR professional and a D.C. advisory neighborhood commissioner.