Not Extending Bush Tax Cuts Will Affect All Small Businesses
Upon the expiration of the Bush tax cuts, among increases in the tax rate for all tax brackets, the dividends tax rate will increase. So even if Congress and the White House extend the Bush tax cuts for all but the top earning Americans, virtually all small business owners, regardless of their tax bracket, will see an increase in their effective tax rate as a result in the increased tax rate for dividends. Policies that make job creation more difficult and investment in innovation more unlikely are reckless, particularly at a time when our economy is so hurting. That is why the Bush tax cuts should be extended across the board at least temporarily.