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Monday, December 26, 2011

In 2013 Reduced Tax Rates set to expire.

Unless another patch comes in. Small business will be hit with much higher taxes if they do well. Since many are S-Corps or Partnerships and this flows to their individual return. This is not good for business. Dividend rates also go up as well. AMT will go back to a lower level unless it is patched again. Flex accounts will have limits which will especially be tough for those with special needs kids that used these flex plans. This uncertainty as well creates a situation where companies DO NOT want to hire perm positions.

For the last two years I myself have done a lot of temp work and hearing about this today on talk radio which interests me as well since I am an accountant really makes me wonder what is going to be. Obviously this election in 2012 I think would make some difference in what happens although maybe not because Obama if he lost doesn't leave until Jan 2013. But if Obama does get a second term he can do what he wants since he can't for a third term. The only thing stopping him not hurting the party as a whole but he  may not care.

The whole health care bill increases taxation a great deal sadly to pay for it. Of course Obama gave us a few small tax breaks while creating bills that will increase taxes greatly.

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