•Obama and Congressional Democrats have said that they want to raise US Income tax in the top two income tax rates in January 2011. Under their plan, the 33 percent rate will rise to 36 percent, and the 35 percent rate will rise to 39.6 percent automatically in January. These rates affect families and small business owners earning at least $200,000 per year
•Small businesses are usually organized as S Corp meaning that business profits flow through to the business owner. The business owner pays taxes on those small business by adding the profits to the income tax form. Therefore, personal income taxes are the same thing as small business taxes.
According to the IRS, most small business profits pay taxes in households making more than $200,000 per year. s like partnerships and S-corporations.
There were 30 million tax returns reporting small business income and a majority of those small business will face a tax rate hike under the Obama-Pelosi-Reid plan.
Sole proprietor profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.
55 percent of S-corporation and partnership profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.
Read more: http://www.atr.org/smallbusiness.html?content=5247#ixzz0uqdyfpf1