This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Survey: Taxes On Consumers Big Issue For Small Biz

JOYCE M. ROSENBERG

NEW YORK (AP) â¿¿ Small business owners who are worried about the so-called fiscal cliff are concerned beyond their own finances â¿¿ they're also uneasy about higher taxes on consumers, according to a survey released Wednesday.

The survey commissioned by Small Business Majority, a lobbying group, found that owners are most worried about losing tax breaks that will help their companies, like higher deductions for equipment purchases. They are equally concerned that a 2 percentage point increase in payroll taxes will force consumers to cut spending â¿¿ which will lead to less revenue for small business.

The results of the survey indicate that business owners generally aren't focused on one of the most highly publicized aspects of the cliff, an increase scheduled to begin Jan. 1 in tax rates on individuals earning $200,000 or more or households earning $250,000 more. During the election campaign, Republicans including presidential nominee Mitt Romney contended that small business owners would be hurt by that increase, and that they would cut back on hiring new workers.

The survey questioned 500 business owners, 47 percent of whom described themselves as Republican. Thirty-five percent described themselves as Democrats. Eight percent said they were independent.

The survey was released as Congress, back in session following the elections, is expected to consider legislation that will prevent the fiscal cliff. Lawmakers are sharply divided on the upper-income tax increases. President Barack Obama has said he will veto any bill that gives tax cuts to upper-income taxpayers.

In results from the same survey that were released last month, 52 percent of the participants said that raising upper-income taxes is necessary to help reduce the federal budget deficit.

Payroll taxes were a big concern for survey participants. Seventy-six percent worried that an increase in payroll taxes will force consumers to cut their spending. That in turn will mean less revenue for small businesses. Employees' portion of payroll taxes was cut by 2 percentage points for 2011 and 2012 to help stimulate consumer spending. That reduction is expected to expire Dec. 31 unless Congress extends it.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs