INFOGRAPHIC: A View from the Cliff
If we go over the fiscal cliff, tax increases and spending cuts set to take effect on January 1, it’s estimated by the Joint Committee on Taxation that 940,000 business entities will be hit. Many of these will be small businesses owners that file business income at the top individual tax rate. The House Small Business Committee gathered some good quotes from small business owners.
Julie Lowen (Vista, CA) Children's Paradise, Inc.:
I own and operate a small chain of preschools. I am a Sub Chapter S-Corp. Any tax increase will force me to cut the payroll and benefits of very hardworking teachers as my primary source of new revenues. If this Congress and President do not take action and change course I will be forced to send over 100 people to the unemployment rolls….
David Curliss (Dayton, OH) Performance Polymer Solutions, Inc.:
Higher taxes mean less cash to reinvest - simple as that. We won't be hiring more people and we won't be purchasing equipment to expand the company. This is not complicated, higher taxes retard economic growth.
Kim Irwin, President/Owner, (Huntington, WV) Integrity Wire, Inc.:
I am an electrical distributor specializing in wire and cable. I am an S-Corporation. The new taxes will keep me from hiring this year, even though I could use another employee. I pay more in taxes already than I take home. I, like many other small business owners, reinvest in the company and employees rather than taking the money for personal use. The new taxes are going to be very hard on my company.
Washington must extend the current tax rates and provisions and replace the sequestration with more responsible budget cuts. After that, they need to tackle comprehensive tax reform and address rising entitlement spending.
An infographic from the Partnership for a Secure Financial Future show the risks to jobs and economic growth by going over the fiscal cliff.