Information Center

Should Obama Extend Bush Tax Cuts?CBS) Just concerning everyone agree the Bush tax cuts for center class and lower profits Americans must not be allowed to terminate at the end of this year and in all probability they determination be extended, information CBS News' leader White House reporter Chip Reid.

But a main battle is brewing more than whether to expand the so-called tax cut for the rich.

Like a good number small business, the Tart Lumber Company in Sterling, Va. have been hit firm by the recession. Craig Fritsche, president of Tart Lumber Company, tell Reid that the final thing small business owner need now is a tax enlarge.

"The article is I won't go out with hire more public if these tax charges go through because I won't contain the capital to invest in the production as much," says Fritche.

But President Obama needs to permit the Bush tax cut to expire for persons making more than $200,000 a year, with for couples’s creation more than $250,000. Those include thousands of small businesses - 75 percent of which folder their business takings on their personal taxes, information the National Federation of Independent Business.

If the tax cut do expire, the summit rate for business owner will enlarge from 35 percent to 39.6 percent. For a industry that brings in about $400,000 a year, that's concerning $12,000 more in taxes with for a business by income of $2.5 million, taxes would go up concerning $108,000.

And the NFIB information while only concerning three percent of little businesses earn over 250,000 dollars, little business advocates speak that three percent employs concerning 25 percent of the U.S. workers.

Overall merely concerning two percent of Americans be eligible as rich in the president's plan as well as would see their tax rates increase but they pack an vast economic punch.