The Democrats in Congress are talking about cutting taxes. On the surface that sounds like good news for small business. However, their plan is not a simple one -- nor is it permanent.
From James Pethokoukis at US News:
Time to prime the pump? Democrats sure think so. "There was an overwhelming consensus that the time has come to stimulate the economy" is what Barney Frank, chair of the House Financial Services Committee, told Bloomberg News yesterday. This stimulus would presumably be done through targeted tax cuts, tax rebates, or increased government spending. All temporary measures to give the economy a quick boost. All quaint throwbacks to old-fashioned, Keynesian, demand-side, "put money in people's pockets" thinking. And all unlikely to give the politicians the "bang for the buck" they might hope for.
Pethokoukis offers a pretty compelling history and economics lesson to support his point. Worth a read!
Thanks, Jeff, for the highlight on these tax issues. I'll be posting more on tax issues on my blog in the future.
The Alternative Minimum Tax will be first, to be sure.
Thanks, Jason M. Blumer, CPA
I have a fear that the AMT trap will not be fixed in time given the nature of politics right now in Washington. Hope I am wrong, but....