Oct 12, 2012
Written by Rhonda Abrams-- Gannett
During
election season, everyone loves small business.
President
Barack Obama loves small business. GOP presidential nominee Mitt Romney loves
small business.
During
the first debate, they mentioned the words “small business” 25 times. But where
do the candidates stand on small-business issues?
Of
course, small businesses care about a range of concerns. If you think the
deficit is the most important issue, you’ll probably lean toward Republicans.
If, on the other hand, you believe that supporting the middle class is vital,
you’ll probably support Democrats.
If
you’re not sure who to vote for Nov. 6, I’ve devised a fact sheet to help:
1.
Your company’s legal structure is a “C’’ corporation.
2.
You are in a health-related industry.
3.
You make more than $1 million in taxable income, i.e. income after expenses and
deductions, and are a sole proprietor, “S’’ corporation, LLC, or partnership.
4.
You have more than 50 full-time employees and do not provide health insurance.
5.
You want to start a business, are older than 40 years or have a medical
condition.
6.
You are in the coal, gas, or oil industries.
7.
You’re in an environment-related industry.
8.
You are in residential real estate, construction
,
home remodeling, or design.
9.
Your business is incorporated and pays part or all of your health insurance, or
you are an employee of a business that pays at least part of your health
insurance.
10.
You expect to inherit more than $5 million or leave more than $5 million to
your heirs.
Who’s
your small-business presidential pick?
1.
Romney. Romney’s tax plan includes reducing the corporate federal tax rate to a
maximum of 25 percent, instead of the current top rate of 35 percent, and
eliminating the corporate Alternative Minimum Tax. Obama proposed lowering the
top corporate rate to 28 percent with a maximum of 25 percent on manufacturers.
2. Obama. Under the Affordable
Care Act, what detractors call Obamacare, an estimated 14 million more Americans
will have health insurance by 2014; 29 million more by 2019. That means a huge
number of new patients and opportunities for health-related small businesses
and providers.
3.
Romney. Both Obama and Romney propose continuing Bush-era tax cuts for most Americans.
However, Obama would let the tax rates
for the wealthiest return to Clinton-era levels to help reduce the deficit.
Romney would keep those cuts, and someone with $1 million in taxable income
would save more than $390,000.
4.
Romney. Romney is committed to repealing the Affordable Care Act, which
requires businesses with more than 50 full- time employees to provide a minimum
level of health coverage or pay a fine.
5.
Obama. Many would-be entrepreneurs can’t start a business because they can’t afford
— or get — health insurance, especially those older than 40 or with health
problems. The Affordable Care Act requires insurance companies to cover people
with pre-existing conditions, creates competitive health care exchanges, and
provides tax credits on health insurance premiums for those with incomes up to
400 percent of the poverty level. In 2010, that’s $88,000 for a family of four.
6.
Romney. Romney’s plan calls for reduced regulation of energy production, which
should help those in extraction industries such as coal, gas, natural gas, and
hydraulic fracturing, also called fracking.
7.
Obama. Because his energy policies contrast with Romney’s plan, above.
8.
Obama. Romney says he will offset his tax breaks by eliminating other
deductions. A likely target:home mortgage interest. In early October, the
Republican nominee suggested that deduction might instead be part of a “bucket”
of all deductions with a combined maximum total of $17,000. Many small
businesses are in home-related industries, and it’s likely those businesses
would suffer with the elimination of tax incentives for home ownership.
9.
Obama. Another likely deduction to be eliminated to offset Romney’s tax breaks
would be the exemption of taxes on employer-provided health insurance. If your
employer pays all or part of your health insurance, that could easily become
taxable income under Romney — even if your own small business is your employer.
10. Romney. Romney proposes eliminating the
estate tax. Currently, estates worth $5 million or less are exempted from
taxes, and estates worth $5 million or more are taxed at a maximum of 35
percent.
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