While Senate Democrats this week offer a new compromise on U.S. tax cuts including an extension of the payroll tax cut, broader tax reform remains unresolved heading into next year’s presidential election. Small businesses especially have a lot at stake.
Small business, for example, could benefit from a beefed up research and development tax credits, said Dean Zerbe, national managing director at the Alliant Group, and former tax counsel for the Senate Finance Committee. The popular tax credit celebrated its 30th anniversary in October. “It can be a life saver for a small business owner,” Zerbe said.
Tax reform and larger questions about trimming America’s budget deficit hang over businesses. The Tax Foundation recently highlighted a survey of business and government leaders that found uncertainty about the taxes as among the reasons why businesses are hoarding cash and not hiring. Click here to see the full Ernst and Young report.
And if you want to get a head start on your worrying for 2012, check out our list of Endangered Federal Tax Deductions and Benefits, many of which affect small business owners.