Your Tax Return May Cost More

Something that all economists know is that all tax increases on businesses are passed on to consumers. All of them. There is no such thing as a free lunch.

The Tax Extenders Bill, HR 4213, would impose a new tax on small S Corporations…like mine. If this bill becomes law, I will be forced to increase my rates. I’d guess the increase at somewhere around 10% (I’m in Las Vegas for the week, so I can’t run the numbers as well as I could in Irvine). Please call your Senators (you can find their phone numbers here) if you don’t like the idea of such a rate increase and a discriminatory tax against small S Corporations. For Californians, you can reach Barbara Boxer’s office at (202) 224-3553 and Dianne Feinstein’s office (202) 224-3841. You can also send emails to them through the contact page I linked to.

On the other hand, if you like the idea of only large tax firms and higher charges from small tax practices, do nothing. NASCAR, Iowa diesel biofuels, and other wonders are part of the tax extenders package. I’m sure they’re important (to those people) but I don’t think they need tax subsidies.

Comments are closed.