bizjournals: The small business owner's guide to the presidential election -- bizjournals

tosece.blogspot.com
John McCain and Barack Obamz have fundamental differences on how to do McCain emphasizes the role that low tax rates play ineconomic growth, while Obama thinks government investmentsx in targeted areas, such as alternativr energy and the creation of new are important. Both, however, will be constrained by fiscalprealities -- the ballooning federal deficigt and the still-uncertain cost of the nation's financiaol crisis. They may have to drop or defe r large chunks oftheir agenda. For businesses, one thingg seems clear: Companies will face more governmentg regulation.
Both candidates are "likely to be big said Veroniquede Rugy, senior research fellow at the Mercatus Center at George Mason This report looks at how the outcome of the electioh could affect small businesses in four key taxes, health care, energy and the rulees governing union organizing. John McCain claims Barackk Obama wants to raise taxes onsmalp businesses. That is true if the businesx owner makes morethan $200,00 a year (or $250,000o per family). Obama has proposed increasingf personal income tax ratews for the top two income brackets to what they were durinbg theClinton administration: 36 percent and 39.6 percent.
Ratews for other income brackets would be unchangedunder Obama'xs plan. Earnings at most smalol businesses are passed through to their owners for tax purposew and are taxed at individual incomwtax rates. Only 2 percent of taxpayerzs with small business income will pay taxes at the two highest ratesin 2009, according to the Tax Policy Obama's proposed tax hike, therefore, would affect relatively few smalk businesses. These small business, however, are "ab important slice of the small business saidTodd McCracken, president of the National Small Busines Association.
They tend to be higher-growth smalo businesses that create more jobsthan lower-income companies, he "You don't want to give those people reasons to do unproductives things," such as sheltering their income. A business ownef who makes about $300,000 a year probably puts $100,00 0 of that back into the saidDewey Martin, a certifiefd public accountant in Hampden, Maine, who represents about 125 businesw clients and also chairs the accountiny department at Husson College. "If you take money out of theif pockets, they're not going to be creatinfg jobs," Martin said.
Obama also has proposed tax cuts forlower - and middle-income Americans, however, so most small businesses wouldc pay lower taxes under his plan, accordinf to his campaign. McCain has proposed making the rate cuts adoptecd during the Bushadministration permanent, including the 15 percenf rate on capital gains and He also proposes reducing the corporater tax rate from 35 percent, which he says is the second-highesty rate in the developed world, to 25 percent to make U.S. businesse s more competitive. John McCainh and Barack Obama would go in opposite directionzs when it comes tothe employer's role in providing healthn insurance.
McCain's health care plan would encourage individuals to buy insuranc e ontheir own. Health benefits provided by employers wouldr be taxedas income. Individuals would receivse a $2,500 refundable tax credit ($5,00 for a family) for health insurance premiums. They would be able to purchas any plan offered anywhere inthe