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What the President’s Tax Rate Increases Mean: Fewer Jobs, Less Retirement Security

December 10, 2012

Today, as President Obama heads to Detroit to renew his call for $1.6 trillion in higher taxes, including higher tax rates, Main Street job creators are sharing first hand what the impact of the President’s proposal means to them and the men and women working alongside them – their employees.  In some cases, the President’s tax hikes will force businesses to adjust hiring plans and hold back on capital expenditures.  In other cases, higher taxes means delaying raises and curtailing contributions to employer-sponsored health and retirement plans.  Across industries and across the country these entrepreneurs share a similar message – tax hikes hit more than those who pay the tax bill – they hurt those who work for Main Street, too.

“Business owners are already burdened with plenty of tax increases.  Increases will only hurt the businesses, which employ many of the same people [President] Obama believes he is helping.  Hurt the businesses, and you are hurting the people they employ.”
(National Association of Wholesaler Distributors (NAWD) member)

“Any increase in taxes will clearly affect economic prosperity for myself, my family, my employees and their families, and my community.”
(Adam Soccorsi, Owner, AutoQual, IFA Member)

“[The] proposed increased tax rate will affect our businesses immensely.  Not only will we not hire any additional employees, we will have to reduce our workforce.  We have stopped the process of building an additional 42,000 square foot warehouse.  We have held off on our 401k contribution and HSA contribution until we see what happens in January.  This is very pivotal for our business on whether we continue to grow and add employees or stop all hiring and investments.”
(National Association of Wholesaler Distributors (NAWD) member)

 “While taxes are not paid at the company level for a S–Corp, money must be withdrawn for the owners to pay the income tax individually.  Higher personal taxes on S-Corp income leaves less money in the company to pay raises, new hires, health care benefits and to be able to fund capital purchases or expansion plans.”
(National Association of Wholesaler Distributors (NAWD) member)