Next year, several of the business tax cuts put in place in 2001 and 2003 (commonly referred to as “Bush Tax Cuts”) will expire. What does this mean to your salon?

Open Small Business blogger Anita Campbell explains: First, those affected include investors, individuals and small businesses, as the personal income tax rate will increase, as well as the top income tax rate (the rate that about 75 percent of small businesses are taxed). Here are the specific numbers:

•The 10 percent bracket rises to15 percent

•The 25 percent bracket rises to 28 percent

•The 28 percent bracket rises to 31 percent

•The 33 percent bracket rises to 36 percent

•The 35 percent bracket rises to 39.6 percent

In anticipation of how these changes can drastically affect small-business owners, Campbell notes that the Senate Financial Committee met in July to plan a way to extend the tax cuts without impacting the deficit. It is unclear at this time if the extensions will happen. For more info, click on the source article.

Source:

Open Small Business Forum: What You Need to Know About Small Business Tax Provisions Expiring in 2011