Your Cost of Doing Business Is Up 25%…Now Go Hire People
Courtesy of Joshua M Brown, The Reformed Broker
Twilight Zone territory. Ignored during virtually every phase of the stimulus and bailout episodes, they are now being stomped on as big-ticket government programs flail about for more stones to squeeze blood from.
New York Post:
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.
Everything about this is stupid for both parties, as small business is responsible for 40% of the job creation in America.
A quick idea of what these new costs are below:
* An increase of 4.6% in federal taxes from 35% to 39.6% (expiration of Bush tax cuts)
* An increase in capital gains taxes from 15% to 20% (expiration of Bush tax cuts)
* A new tax of 3.85% on investment income, dividends, rents, royalties mandated in the new health care bill
* An increase in the Medicare payroll tax to 2.35% as mandated in the new health care bill
* In states like New Jersey and others, state and municipal taxes have been raised by the average of almost 2%
If you were planning a double dip in the economy deliberately, your plans might look something like the atrocity of new taxes listed above.
Source:
Huge 25% Hike For Small Business Kills Jobs in New York (NYP)
