The most familiar spin on how the new administration’s policies might affect small business owners has been the different tax treatment for people who earn more than $250,000 year. (Remember Joe the Plumber?) But the actual stimulus plan is complex and deep, and most small business owners really don’t know how they will be affected. It’s even complicated for their tax people. I know, I have asked my tax guy, and he’s still digging out answers.
An article by Mickey Meece in the New York Times may help a little. At least it tells more than I have been able to uncover elsewhere. This, for instance, was revealing:
Not everyone will be served directly, said Leonard Steinberg, who owns
Steinberg Enterprises, a tax, financial and business advisory company
in West Windsor, N.J. His clients, including mom and pop retailers,
limited liability companies and S corporations — corporations that
elect to have their income pass through to the shareholders — “won’t
see the benefits of the stimulus,” he said.
Reading between the lines here, it seems that if you’re a sole proprietor, though, you’ll probably be paying less taxes. The questions is when and how the stimulus benefit will be passed on to you.
Stimulus spending plans will affect some industries directly, but not others. If you’re in healthcare, education or clean technology, there’s a good chance the spending will benefit your business.
I’m by no means a tax expert, so have a conversation with yours — after giving them time to read through all 1,000 pages!