President Obama announced that he is willing to compromise on the Bush tax cuts, which were set to expire on Dec. 31. Originally, the president wanted the taxes to expire, but only for those individuals making over $250,000 a year. The idea was to keep the tax cuts in place for the middle class, but roll the tax rate back for the “wealthy.”
That plan hasn’t sat well with Republicans (as have most plans President Obama has put forth). And with the current lame duck session, it seems as though the president wants to put the issue of taxes behind him before Congress finishes its session.
While many Democrats are upset over Obama’s new position on the tax cuts, it comes as a welcome relief for many business owners, including HVAC contractors. Perhaps the extension of tax cuts for the top earners will help jolt the economy in the way that the stimulus package didn’t. Unemployment has been sitting just below 10 percent, even with the stimulus, which was suppose to put more people back to work. If more business owners know that their taxes will not be going up next year, maybe they will start hiring again.
I would love to know if you will start hiring more employees now that you know your taxes won’t be going up. Give us your take on the tax situation. We always want to hear from our readers.
Tax cut extension may be good news
James J Siegel is the associate editor of SNIPS magazine. He has been with the magazine for eight years and is based in San Francisco.