Tax Policy, Employer Style

Small business owners listed federal taxes as the most significant domestic issue facing them (28%), followed by petroleum/fuel prices (24%), housing and credit (15%), inflation (14%) and state/local taxes (11%). Regarding costs associated with employment, the two biggest concerns were health care costs (54%) and social security taxes (25%). Finally, 69% felt that a tax cut for employees would provide more economic stimulus than this year's rebate checks.

Taxes had not attracted much attention in this year's political campaign; although a suddenly-under-pressure Barack Obama did indicate this past weekend that he was reconsidering his plans to partially eliminate the "Bush" tax cuts of earlier this decade. Hopefully, some of the upcoming debates will address issues such as candidate opinions of the fair/flat tax, achieving a better return on Social Security funds, how to handle the 2010/2011 effective tax hike (as presently deductions and credits expire) and the alternative minimum tax for individuals.