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Tuesday, June 30, 2009

The Real Effect of Rendell's Taxes on Small Business

While Gov. Rendell continues his propaganda campaign for higher taxes (see WGAL for a related news story on the thousands Rendell has spent in taxpayer funds lobbying for more taxes), the NFIB has issued a response to Rendell's claim that his taxes would only amount to a few hundred dollars a year, or few dollars a week, or a cups of coffee per day, or a penny per second, or whatever makes the tax increase seem small.

While I have already written on how hypocritcal Rendell's tax plan is, it is useful to see what the impact would be on a real small business.

From NFIB:

The data included in the spreadsheet was taken from an actual small business with gross sales $784,000 and a payroll of $384,252.The two owners of this company each take home a salary of $45,000 per year. ...

The attached spreadsheet shows a 16-percent increase in PIT would take away $1,741 in taxes on salaries per year and $1,044 in taxes on money available for investment per year.

The proposed retroactive increase and postponed phase-out of the Capital Stock and Franchise tax would take away an additional $1,290 in taxes in year one and cost nearly $11,200 over five years.

In addition, the governor's proposed 2-percent tax on health insurance premiums would take away an additional $720 per year.
impact of proposed 2009 tax increase

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