| Weekly Update from Sam |
Dear Friends,
The threat of impending tax hikes is costing the U.S. economy already. A new survey by the National Federation of Independent Business revealed that small business confidence dropped sharply in November, and that most small firms have no plans to hire. Federal Reserve Chairman Ben Bernanke stated this week that the tax hikes and sudden spending cuts on January 1, known as the fiscal cliff, are harming the economy even before they happen.
Yet the President’s call for a tax increase on small businesses is the centerpiece of his plan so far. Republicans have proposed to reform spending – the real deficit problem – and prevent marginal income tax rate increases on anyone. In light of the economic evidence, the President’s tax rate increases on small businesses are clearly not the job-creating, confidence-building solution the country needs for a strong recovery.
Sam Graves
Chairman
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The Numbers Are Clear
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The President demands a tax rate increase for earners in the highest two brackets. What he describes as a tax on the wealthy is also a tax hike on small businesses that are “pass through” entities, in which business income is claimed as personal income on federal tax returns.
Pass through businesses are a significant part of the economy:
• Nearly 95% of businesses in the U.S. are “pass-through” entities.
• Pass through businesses employ 54% of the private sector work force.
The President’s proposed income tax hikes for the highest two brackets would:
• Raise the rates on 53% of all business income.
• Eliminate 710,000 jobs.
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Notable Op-Ed
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Asking Too Much of Small Businesses
By Chairman Sam Graves
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| Regulatory Roundup |
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The Environmental Protection Agency (EPA) is reviewing regulations that impose significant economic impacts on many small businesses. Section 610 of the Regulatory Flexibility Act requires agencies to conduct reviews, so the EPA is looking for input. What is the impact of these existing rules on small businesses? Should the rules should be continued without change, amended or repealed to lessen effects on small businesses? You can comment directly on the rules at regulations.gov.
Dec. 31, 2012, is the deadline for comments on three rules:
Heavy-Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements,
National Emission Standards for Hazardous Air Pollutants: Reinforced Plastic Composites Production and
National Pollutant Discharge Elimination System Permit Regulation and Effluent Limitations Guidelines Standards for Concentrated Animal Feeding Operations.
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| December 14, 2012 |
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| What We're Reading |
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Small Biz Resources
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| Tweet of the Week |
Speaker Boehner: @SpeakerBoehner
Threat of POTUS' tax rate hike forcing #smallbiz to “delay hiring," "investments that could help them expand” http://t.co/XQ9vL7Iz @AP retweeted by @SmallBizGOP
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