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Save Small Business from the Fiscal Cliff – Letter to US Legislators from the NFIB

December 6, 2012

capitolAs a small-business owner, I urge you to act now to prevent the tax increases that will impact small businesses if action isn’t taken to avoid going over the Fiscal Cliff.

Several tax rates that affect small business are set to expire at the end of this year. Some of the changes that will impact small business include:

● Individual income tax rates would rise; the 15 percent bracket would become the lowest tax rate. The 25, 28, 33 and 35 percent brackets would rise to 28, 31, 36 and 39.6 percent

● The estate tax rate would increase from 35 percent to 55 percent, and the exemption would decrease to $1 million from $5 million

● The capital gains rate would increase to 20 percent from 15 percent for top earners and rise to 10 percent from zero for those with lower incomes

● Dividends would be taxed as ordinary income rather than capital gains

● The Section 179 expensing limit will fall back to $25,000 and real property will no longer be included

● The start-up deduction for businesses will be reduced from $10,000 to $5,000

● An estimated 31 million additional taxpayers would be required to pay the AMT

This adds up to an almost $500 billion tax increase for 2013 alone. This is a major concern for small business owners like me, since I do not know what my tax liability will be next year. The uncertainty this creates is already having an impact on my ability to make plans to grow my business or add jobs.

Most small businesses are organized as pass-through entities, where the business owner reports their business’s income on their individual tax returns. Allowing the current tax rates to expire will increase the taxes that small businesses pay, directly impacting the ability of small-business owners to invest money back into their businesses.

Raising taxes on small businesses, especially in the current economic environment, hurts our ability to grow and create jobs. I encourage you to give small-business owners the certainty we desperately need by extending all the current tax rates across the board and fighting to avoid the Fiscal Cliff.

Message delivered to:
Senator Bill Nelson
U.S. Senate
716 Hart Senate Office Building
Washington DC 205100001
Fax: (202) 228-2183 via fax

Message delivered to:
Senator Marco Rubio
U.S. Senate
317 Hart Senate Office Building
Washington DC 205100001
Fax: (202) 228-0285 via fax

Message delivered to:
Representative Gus Michael Bilirakis
U.S. House of Representatives
407 Cannon House Office Building
Washington DC 205150001
Fax: (202) 225-4085 via fax

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