One of my fellow Allbusiness advisors, Miranda Marquit is currently doing a series on her analysis of what the presumptive republican and democratic presidential candidates positions are on a variety of topics related to personal finance. I decided that it would be good to look at areas affecting small business owners, since the Small Business Administration reports that small businesses pay out over 45% of the
During my research, something I discovered is that neither Barack Obama nor John McCain has published many positions relating to small businesses. Those that are published tend to be vague, with no significant substance. It has been very hard to find “their words” related to the three topics I believe are currently most critical to small business owners, which are health insurance, access to capital, and taxes. I have scanned speeches and their websites to find the material I am using.
Today I am going to represent the best I can what the candidate’s stated position is related to taxes and financial matters affecting small businesses and their owners.
Here are McCain’s positions as stated on his official website:
(my comments are in italics)
John McCain Will Cut Taxes For Middle Class Families. John McCain will permanently repeal the Alternative Minimum Tax (AMT) – a tax that will be paid nearly exclusively by 25 million middle class families. Repealing this onerous tax will save middle class families nearly $60 billion in a single year. Under McCain’s plan, a middle class family with children set to pay the AMT will save an average of over $2,700 – a real tax cut for working families. (Many successful small business owners fall into the affected category.)
Regarding incentives for small business, McCain’s website says John McCain will improve business investment incentives. John McCain proposes to permit corporations to immediately deduct the cost of equipment investment, providing a valuable pro-growth investment incentive. Expensing of equipment and technology will provide an immediate boost to capital expenditures and reward investments in cutting-edge technologies.
(The benefit of expensing capital equipment purchases is there will be a much lower tax basis for the corporation than under current taxation rules. This could dramatically lower a small corporate tax obligation or the owner’s if the entity is an LLC or S corp.)
John McCain Will Ban Internet Taxes. John McCain has been a leader in keeping the Internet free of taxes. As President, he will seek a permanent ban on taxes that threaten this engine of economic growth and prosperity.