Small Business Taxes | TaxConnections

26 Jul 2022

Small Businesses In Kentucky In Danger Of Tax Hikes Under Tax And Spending Spree

Small Businesses In Danger Of Tax Hikes In Kentucky

On July 20, 2022, U.S. Senator Rand Paul(R-KY) Ranking Member of the US Senate Committee on Small Business and Entrepreneurship, released a report on small businesses in Kentucky that are in danger of tax hikes under a tax and spending spree.

“Small businesses in Kentucky are already struggling with record high prices on everything from gas and rent to labor and supplies needed to run their businesses. And now, as the U.S. faces historically high inflation, Senate Democrats seem completely content with adding to their struggles by passing yet another tax and spending spree,” said Dr. Paul. “Now is not the time to raise taxes on Kentucky’s already vulnerable small businesses.”

Highlights:

Democrats are considering increasing taxes to pass-through business owners.
Despite promises that these taxes are targeted towards the wealthy, these taxes put 91,142 small businesses in Kentucky in danger of a tax hike.
While Democrats claim that their tax hikes are aimed at the wealthy shareholders, these business owners employ 62 percent of the Kentucky’s small business workforce, which would put an estimated 894,738 workers in danger.

Small Businesses In Danger of Tax Increase In Kentucky:

In the midst of historical levels of inflation(9.1%) over last year, Democrats are considering increasing taxes to pass-through business owners. Despite promises that these taxes are targeted towards the wealthy, these taxes put 64% of small businesses(91,142 small businesses)in the state in danger of a tax hike simply because they chose to organize as a entity pass-through entity.

While Democrats claim that their tax hikes are aimed at the wealthy
shareholders, these business owners employ 62% of the state’s
small business workforce, which would put an estimated 894,738
workers in danger.

The U.S. National Average:

An estimated 8,365,284 small businesses (64% of small businesses nationwide) are in danger of a tax hike. These small businesses account for 76,251,996 jobs (62% of the small business workforce).

With historically-high levels of inflation, now is not the time to raise taxes on already vulnerable small businesses.

Ranking Member Senator Rand Paul, MD. You can send a message to Rand Paul about taxes at: paul_schedule@paul.senate.gov

TaxConnections Provides A Template Letter On How To Address Letters To The United States Congress At This Link.

Written by TaxConnections Admin | Posted in Senator Rand Paul

24 Sep 2019

Simple Strategies To Reduce Small Business Taxes

Small strategies make big impacts when it comes to figuring out the year’s deductions. Sadly, many small business owners never get the help they need because they’re simply unaware of the many tax deductions available to them. This is where a good, knowledgeable CPA is invaluable. And since you’re hiring your CPA to help you organize and prepare your taxes – he or she becomes a deductible business expense, too. Tons of little-known, obscure strategies will help pull you out of the hole come tax time; it’s just a matter of discovering what they are and how best to take advantage of them. If you want to shave money off what you’ll owe the IRS next year, give these strategies a try. You’ll be surprised at how much of your hard-earned cash you’ll be able to legally keep.

Deduct the Cost of Help

Hire an expert. We’ve already discussed the wisdom behind hiring a professional accountant to help keep your books in record shape, but there are other pros out there who could make your life easier while building up your deductibles, too. Everyone from the copy writer who pens your social media posts to the team who cleans your office are fair game. So long as they’re helping you run your business and you pay them for that purpose, the money you pay them is tax deductible.

Written by Kazim Qasim | Posted in Small Business Taxes

22 Nov 2017

Small Business Tax Rule Changes & Risk Assessment Tools for Canadians in 2018

The proposed small business tax rule changes are expected to be in place January 1, 2018 and will impact incorporated small businesses in Canada. These laws will hit those splitting income in families and saving assets inside corporations. To help our clients assess their exposure we have developed a Risk Assessment Tool (RAT). We hope you find the name amusing.

Written by Grant Gilmour | Posted in Canada • Small Business • Tax Changes

07 Nov 2014

Salary or Dividend – Compensation Strategy For Incorporated Business Owners

Are you an incorporated business owner wondering whether you should pay yourself salary or dividend?

It is not a simple straight forward question and there is no one-size-fit-all answer to it. Due to the introduction of eligible and non-eligible dividends and the changes of the gross-up and dividend tax credits in the past few years, the simple rules of thumb that used to work in the past do not apply any more. You should consider the following five factors based on your own specific circumstances to tailor-made your own salary-dividend strategy.