bizjournals: The small business owner's guide to the presidential election -- bizjournals

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John McCain and Barack Obamwa have fundamental differences on how todo that. McCai n emphasizes the role that low tax ratea play ineconomic growth, while Obama thinks government investmentes in targeted areas, such as alternatived energy and the creatiohn of new businesses, are Both, however, will be constrained by fiscal realitiesd -- the ballooning federal deficit and the still-uncertain cost of the nation'w financial crisis. They may have to drop or deferd large chunks oftheirt agenda.
For businesses, one thing seema clear: Companies will face more government Both candidatesare "likely to be big regulators," said Veronique de senior research fellow at the Mercatus Center at Georgs Mason University. This report looks at how the outcomew of the election could affect smallk businesses in fourkey areas: health care, energy and the rules governingf union organizing. John McCain claimx Barack Obama wants to raise taxexs onsmall businesses. That is true if the business ownefr makes morethan $200,000 a year (or $250,0090 per family).
Obama has proposed increasing personal income tax rates for the top two income brackets to what they were during the Clinton administration: 36 percent and 39.6 percent. Rates for other income brackets would be unchangedunder Obama's Earnings at most small businesses are passed through to theirr owners for tax purposes and are taxed at individuap income tax rates. Only 2 percent of taxpayers with smalkl business income will pay taxes at the two highesty ratesin 2009, according to the Tax Policy Obama's proposed tax hike, therefore, would affec t relatively few small businesses.
These smalll business, however, are "an importanyt slice of the smallbusiness community," said Todd McCracken, presiden t of the National Small Business They tend to be higher-growth small businessews that create more jobs than lower-incomr companies, he said. "You don't want to give thosed people reasons to dounproductive things," such as shelterinb their income. A business owner who makezs about $300,000 a year probablhy puts $100,000 of that back into the saidDewey Martin, a certified public accountantt in Hampden, Maine, who represents about 125 businesw clients and also chairs the accounting department at Hussonm College.
"If you take money out of theirr pockets, they're not going to be creating Martin said. Obama also has proposed tax cutsfor lower- and middle-incomd Americans, however, so most small businessees would pay lower taxes undedr his plan, according to his campaign. McCaihn has proposed making the rate cuts adoptee during the Bush administration including the 15 percent rate on capita l gainsand dividends. He also proposes reducin g the corporate tax rate from35 percent, which he says is the second-highesft rate in the developedr world, to 25 percent to make U.S.
businesses more John McCain and Barack Obama wouldr go in opposite directions when it comes tothe employer's role in providinyg health insurance. McCain's health care plan would encouragre individuals to buy insurance ontheid own. Health benefits provided by employers would be taxecas income. Individuals woulxd receive a $2,500 refundable tax credi t ($5,000 for a family) for health insurancre premiums. They would be able to purchaswe any plan offered anywhered inthe country.