POSTED: Tuesday, July 27, 2010 - 5:20pm
UPDATED: Wednesday, July 28, 2010 - 6:09pm
U.S.-- 30 million small business owners filed taxes in 2008. Now, a majority of those small businesses may be facing a tax hike.
Owners often pay taxes on their businesses by putting the profits on their personal tax forms. Therefore, personal income taxes are often the same as small business taxes.
CPA Tony Morgan says that during the Bush Administration, Congress passed several tax cuts for small businesses. In January, those tax cuts come to an end, unless Congress says no. He says, "for these tax increases to take place, Congress has to do nothing."
The effects of the tax hike will spread across the country. Whitehouse restaurant owner, Nell Hoce, says if the tax hike happens, they may have to cut employees and work more hours.
If the raised tax rates happen, its greatest effects will be on small business owners earning at least $200,000 a year.