Search
Search By Topic
- ACCOUNTING (5)
- ADVOCACY (50)
- AMT (9)
- ANTITRUST (1)
- AVIATION (6)
- CAPITAL MARKETS (41)
- CARD CHECK (32)
- CARRIED INTEREST (2)
- CFIUS (1)
- CHINA (5)
- CLIMATE CHANGE (37)
- COMPETITIVENESS (32)
- CORPORATE CITIZENSHIP (19)
- COUNTERFEITING (38)
- DATA SECURITY (9)
- DISASTER (18)
- DISCRIMINATION (12)
- ECONOMICS (332)
- EDUCATION (56)
- ELECTIONS (53)
- EMPLOYMENT (36)
- ENERGY (87)
- ENERGY INSTITUTE (13)
- ENVIRONMENT (37)
- FMLA (4)
- GOVERNMENT CONTRACTING (10)
- H-1B (4)
- HEALTH CARE (137)
- HOMELAND SECURITY (10)
- HSA (2)
- IMMIGRATION (51)
- INFLATION (5)
- INFRASTRUCTURE (41)
- INSURANCE (5)
- INTERNATIONAL (13)
- INTERNET (19)
- LABOR (36)
- LEGAL REFORM (67)
- MARKETING (14)
- MEDICARE (1)
- MINIMUM WAGE (4)
- NCF (6)
- NCLB (17)
- NCLC (23)
- OSHA (1)
- PENSION (1)
- REAL ESTATE (11)
- REGULATORY (52)
- RETIREMENT (8)
- SB SUMMIT (5)
- SBA (19)
- SEC (2)
- SMALL BUSINESS (291)
- SOUTH KOREA (2)
- SOX (6)
- SPACE (2)
- SPIRIT OF ENTERPRISE (12)
- SUMMIT (8)
- SUPREME COURT (9)
- TAXES (121)
- TECHNOLOGY (69)
- TRADE (80)
- TRANSPORTATION (46)
- UNIONS (42)
- WELLNESS (20)
- WORKFORCE (65)
 September 2010 |
|
|
CommentaryTurn Off The Tax Faucet
Publication Date:
June 2010
Congress and the administration are desperate to tap sources of tax revenue wherever and whenever they can find them to help pay for costly government programs. Unfairly, and more often than not, the business community is caught in the crosshairs. A case in point is The American Jobs and Closing Tax Loopholes Act—sometimes referred to as the “jobs bill”—now before Congress. This legislation would extend unemployment benefits and renew important expired business tax provisions, including the R&E tax credit. To pay for itself, however, the bill calls for a laundry list of permanent tax increases on businesses in exchange for temporary tax extenders, including tax increases on small businesses—America’s job creators. One of the legislation’s most alarming provisions is a payroll tax on certain individuals and small businesses that form S-corporations. Under current law, owners of S-corporation service-sector companies—such as architectural and accounting firms—don’t pay taxes at the company level; rather, the owners pay personal income taxes on the business profits as a shareholder in the company. Increasing taxes on fully compliant small business owners and making the tax code even more complex would not inspire confidence in our nation’s primary job creators. The bill would also punish U.S. firms that do business overseas by limiting the foreign tax credits that they can claim for income taxes paid to other countries. This proposal amounts to a tax hike that would hinder the ability of American worldwide companies to compete globally, create jobs, and stimulate economic growth. In addition, the legislation would raise taxes on the successful investments of private equity, hedge, and venture funds. The result would be scaled-back investments in small businesses and diminished innovation in real estate, energy, and other critical sectors of the economy. In short, the jobs bill targets businesses as an unending funding source for the administration and Congress. The legislation’s one step forward, two steps back approach would be counterproductive to job creation, heightened U.S. competitiveness, and economic growth. Though the economy needs Congress to extend expiring tax relief, it can’t afford the permanent tax hikes called for in this bill. In these fragile economic times, with nearly 1 in 10 Americans jobless, it would be the height of economic folly to target business— or any group of Americans—for a major tax increase. Congress, instead, should scrap these proposed taxes and work on pro-growth economic initiatives that would let businesses of all sizes create jobs and grow the economy. |
|
| |
|
Comments
Knowledge without common sense is ignorance and this current administration is lacking in both areas. (Destin, FL)
I hope everyone will come to realize this majority house/senate and President have never met a private sector job they didn't want to get rid of, there is no recovery nor will there be under their current plans to restructure this country I would advise all your readers to vote in Nov and get rid of all encumbants and vote commons sense and accountability in. Or we will all be on some government subsidy of some sort. As a small business owner and real estate salesperson, I am seeing exactly what these environmental policies will cost home owners, making house build before 1978 unsaleable and devalued unless they are retrofitted to the governments specifications and their certified contractors. This is how the government steals the property rights I have sworn to uphold in my business (Purcellville, Va)
Yes, The EPA has promulgated an amazingly poorly timed LEAD PAINT rule which mandates every GC and Subcontractor in the country spend upwards of $750 on training and certification fees and some Thousand more on specialized dust containment and cleanup equipment. Worst of all, they are not allowing homeowners who have no small children or pregnant women in the home to "Opt Out"........this is going to be a boon to the unlicensed handyman, who doesn't follow these types of regulations anyway and terrify legitimate contractors who are very fearful of a potential $37500/day fine..This coupled with proposals to make all SubS Corporations pay payroll taxes on dividends, Proposals to vastly expand 1099 requirements to every business entity paid more than $600/yr, and pushing down the threshold size for Obamacare requirements from 50 to 5 just for Construction Firms, makes us feel small Design and Construction firms are being targeted........ and people wonder why smaller firms are essentially hiring NO new net employees in this "Recovery"? (Delray Beach, FL)
About time the US Chamber decided that this Administration is not business friendly. (Yuba City, CA)
"Punish U.S. firms that do business overseas by limiting the foreign tax credits that they can claim for income taxes paid to other countries" - Heaven forbid!!!!! Most of these companies have moved jobs overseas. If they can't or won't help the American economy and worker which has bee so good to them, there should be a penalty for transferring jobs overseas. (Rochester, NH)
It's overwelming to try and understand all the new changes both States and the Federal government are imposing on small business today. I'm sure every day we open our doors we violate some rule or regulation we don't know about, because they change so fast. We have people who spend a great deal of their time involved with these new rules and endless regulations that do not generate revenue for our company, just cost. (Indianapolis, Indiana)
If not now, when?
When will Congress ever find the will to say no? When will the public trough ever be too big for these people?
The time is now and it is up to each and every one of our elected representatives to show the political courage to say ... "No. We are not going to extend Unemployment Benefits to as many as 124 weeks. If we do, we will be back in 23 weeks asking for another 13 weeks. It stops now!"
As an employer offering clerical work at a starting wage of $8.50 per hour, I am currently competing this Summer with the Federal and State government entitlements. The labor pool is not actively seeking work and will not be seeking work as long as unemployment compensation, Medicaid and the entire Summer off with pay ( unemployment compensation) and healthcare benefits (medicaid) have far more appeal than having to actually work and punch a clock.
Say No to the extension and take a stand! (Paducah, Kentucky)
Wait for the haters on the Left to start bashing the common sense stance here by the Chamber. There really is no justfication for plans like this. As we always hear, see one hand by this administration doing something, but watch the other hand, they are up to something with this latest bill to grant 20.3 million to Hamas immigrants coming to the U.S. What jobs will they land while they are here? Going to the post office to pick up the Government subsidy check is not a job, but will be the toughest thing they do, just like those coming in from Mexico to retire in the good ol US of A.
I agree, vote on Nov 2 and get the incumbent voices that shout so loudly out of here, we do not need them or their radical social policies. People need to take responsibility for their actions, learn that the harder they work the more they have to show for it and stop running around with their hands out to Obama. (Torrington, WY)
This administration has to understand that it myust reign spending, while limiting any additional taxes on business. The net result from higher taxes on business will be lay-offs and general rise in unemploymnet. Although the current administration's goal may be to move jobs from the private sector to big government, in the long run this is not sustainable. I will definitely not support any candidate running for re-election if they have not stood firmly against this administration policies and processes. (New Britain, CT)
Maybe the current administration should take a business course about what it takes to actually run a business, keep the books balanced, and make a profit. Everything the current administration has done and is doing countermands any ability for a business owner to have the confidence to hire anyone. If these additional tax hikes are implemented by the Congress and signed into law by the President, I know that I for one will continue to hold on hiring so that I can afford to pay the taxes. What idiots! (Fenton, Missouri)
My husband is on unemployment and was laid off approximately 9 months ago. He does not have his hand out, waiting for government paychecks. He has sent out well over 200 resumes and has contacted anyone he can think of trying to get even an interview, let alone a job. There are none out there. Now, if his unemployment is not extended, even though I work and we do not live above our means in any way shape or form, our position will be further compromised. This is a temporary situation and we both believe and hope that he will eventually get a job. Until that time, however, we need the help that his unemployment checks provide. I should add that in our entire adult lives, neither one of us has ever been out of work before and have never collected any kind of government benefit. (Leland , North Carolina)
I agree no tax is a good tax - and the uncertanty (why be uncertain, the Administration has a tax and spend soul!) is destroyign small businesses. However, I recently read the Chamber is helping sue Arizona about the illegal law there. If true, shame on you! (Sterling, VA)
I bet none of you have even read the jobs bill. The snippets of information contained in this article are without context or reasonable insight into the true effects of the bill. The US Chamber supports businesses, as it should, but not at the expense of the American citizen and worker. Shame on you, COC. (Rogers, Arkansas)
Thank God Olympia Snowe saw through the bill to the S-corp taxes and had the backbone to stand up to the administration.
This bill would have destroyed S-corps.
I was willing to fly to Washington and march on the Capital with torch in hand to show the idiots on the hill that I mean business. I pray that the other S-corp owners out there would have joined me. (San Diego, CA)
i have my owne cleaning business i have seen a drop off of the people that can pay for me to come in and cleaning there homes. rentals are also down here at the beach. if they put more taxs on us will i am going to have to close it. if the business dosent pick up i will need to close anyway so i am in a very hard place at this time. i am very small. i run it and they only worker i was hoping to hire this year but the work is just not there (Dagsboro, De)
The ONLY change that Americans are getting is from FREEDOM to COMMUNISM! Current administration agendas are for big government perpetuating itself. To be fruitful and, multiply exponentially! I tried to warn the pre-election supporters that they were making the biggest mistake in U.S. History. But, they wanted change! They now can only realize the error of their way. Those that will admit to it. (Pittsburgh, PA)
It’s the people VS the government and the Union (TO OF THE SAME!)….. If the government can’t Tax small business out of business they will send OSHA to them to finish them off. Fining the Small business like OSHA is, is a disgrace and unfair! It is not up to small business to pay for the Governments disgraceful spending habits! Or fund the Government through OSHA! It is time for a cleansing program of all politicians and quit the back room hand shaking with the union. WE need new young people that have their kid’s future in mind. These Kids today need jobs to go to and that means small business needs a chance to prosper. No more politicians sitting on their “BUTTS” letting the union sliding a little here and a little there to help them! Funny how when OSHA show s up at a small business it’s $5,000.00 for each thing they see but when it comes to the union they get 30 days to make the corrections. Two sets of standards “WE THE PEOPLE” and the “GOVERNMENT-UNION”…. The union is now putting their price tag on FREE ENTERPRISE for America!!!! (Very, Unhappy)
As a percentage of income, it is still the legal American citizen that pays the largest percent of the tax bill that supports the government.
As a percentage of income, it is still the legal American citizen that outspends its income.
As a percentage of the irs income tax code pages devoted to business, it is business that receives the benefit of more than 3,000 pages of irs regulation, deregulation and loop holes that has as an end result to allow corporate America evade any responsibility to pay its fair share of the cost of government.
Apparently, bleeding heart businesses think they pay their fair share, but reality is they just pass taxes along to the poor working consumer who pays the tax toll, corporate and management salaries, etc., in the price of the product or service...
Such is the reality when American business reaches the end of the road, and the people still left employed, along with the unemployed, haven’t the funds to buy businesses overpriced goods and services.
Let them scream in ‘moral’ indignation about government oversight, until their last business gasp!
(Oil City, PA)
How embarrassing!We hope you don't teach economics at any intsitution that values free enterprise, private property and those who value personal choice.Did you think this kind of mindless pap up by yourself or did you have help? (Va. Beach, Va.)
Maybe our leaders could take some classes from the leaders Of Wal-Mart, who seem to manage thousands of stores and tens of thousands of employees. I may not agree with all their policies, but they are expanding their profits in a tough economy, and manage finances the size of small countries ! (Sacramento , CA)
It's easy to be "noble" and pompous when you don't have to worry about your job or you're not depending on unemployment benefits to put food on the table. The trouble is, there are millions of people who are going to lose their only source of income- their unemployment checks- while the GOP rants about "No more taxes?" The ones who scream the loudest are the ones who this doesn't affect! Wake up! (Apache Junction, AZ)
Wrong, wrong, wrong. The housing tax credit has stimulated the economy by getting housing sales back up and running. When real estate moves, money moves, when people buy a house they hire mover, a painter, maybe a decorator, they buy insurance, they buy furniture. The biggest problem with the ecomony that money stopped moving and we need to get it flowing again. The tax credit for housing needs to be extended so that the homes that have been under contract can close... otherwise they come back on the market at lower prices or go into foreclosure. Let's keep the momentum going.
People want to work.. Jobs are tight if not impossible. In south Florida new businesses are starting every day. It's going to take some time to see the results. Let's not take away unemployment benefits that are feeding our children. (Boca Raton, FL)
Who will they tax when the small business heart of the "Economy" (if you can call it an economy anymore) is out of business and the former owners are on unemployment? (Addison, IL)
You might consider another example of taxing small business people out of existence with a tax to start on July 1, 2010 that is actually from the Health Care Bill. All tanning salons will have to pay a 10% gross receipts tax for every customer who utilizes their tanning beds. The reasoning is that tanning causes skin cancer, increases health care costs, and should pay taxes to support that future cost of health care. It is funny that they are not paying for any costs but are able to start collecting the taxes now. For the small business owners who run these establishments they are being selectively discriminated against and are likely only the first in a long line of businesses that will be subjected to gross receipts taxes. (Orange Park, Florida)
Don't forget about the "evil" Insurance Agents who work for their customers, they have become the first to be discriminated against. I am an agent, selling mostly health Insurance, and I am not evil or greedy, I work long hours and help my clients with claims issues until they are resolved, I study policies to know what is covered so my clients will not have surprises when they have claims. Who will do this when the exchanges begin in 2014. Imagine, you have a claim that is denied, you get to call the government to help you understand why there is no way they are going to pay that claim. There will be no negotiation on the claim, you will pay what they tell you. Don't you just love the Obama machine! People need to wake up, you don't get something for nothing in this world. (Torrington, WY)
From the Book of JOBS
The private sector maketh, the public sector taketh away.
The more taketh, the less able to maketh.
The less able to maketh, the less to taketh.
And a woeful misery spread across the land... (Orlando, Florida)
Post new comment