How Big Is Your Tax Cut?
How high are the stakes for small business in the battle over President Bush's tax cut? Try $75 billion. That's how much the controversial plan would put in entrepreneurs' pockets, according to a study by AMI-Partners Inc. in New York. The survey focused on the approximately 2.5 million unincorporated businesses with fewer than four employees, most of which pay the top tax rate of 39.6%. Under Bush's proposal, about half of those companies would get an average of $60,000, the study says. Sure, the size of the tax cut could shrink before it's passed. But even a modest slice could mean big bucks for some small businesses.
By Naween A. Mangi