Tax Proposal Small Businesses 40% Corporations 28%, Manufacturers 25%
Should small business owners pay an income tax of 40% vs 28% for Corporations. Currently the highest individual tax is 39.6% for individuals in the highest tax bracket. What about manufactures at a 25% tax rate. Currently, corporations are paying tax rates of 35% or 34% for professional corporations (law firms, doctors, accountants).
This tax rates are being proposed by the President Obama Administration. In a speech reported by New York Times, President Obama said this would save American jobs from being sent overseas by lowering the tax rates for manufacturers and corporations.
Tax reform discussions have been discussed since last year when Congress pushed through major tax changes to keep some year 2000 tax reforms proposals from expiring. Giving the current uncertainty for major tax changes expected to expire and the implementation of the Affordable Health Care ACT (aka Obamacare), will small business cut back further on hiring and expansion plans giving the uncertainty in their tax rates. Should their be an equal deduction in small business tax rates just like corporations and manufacturers.
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