ONLOOKERS SAY FISCAL CLIFF DEAL OFFERS SOME ENCOURAGEMENT TO BUSINESS OWNERS
By Beth Fitzgerald/NJBIZ
January 2, 2013
The fiscal cliff deal struck in Congress raises income tax rates for single taxpayers making more than $400,000 and married couples earning above $450,000 — and many of these wealthy taxpayers are small-businesses owners. But by putting an end to the uncertainty over future tax rates, the deal could encourage businesses to invest, expand and hire more workers, experts said.
Still, there are new clouds on the horizon: in a few weeks, Congress is expected to embark on deficit reduction, with spending cuts that could dampen economic activity.
“With some stability, business owners can now make business decisions,” said Alan D. Sobel, managing member of Sobel & Co., in Livingston. “What really interferes with making decisions is uncertainty — people become paralyzed and sit on the sidelines. So my sense is that now that there is some element of certainty — at least, as it relates to income taxes — business owners are going to be freed up to be able to make decisions about investments in equipment, investments in people, in opening up new markets.”