Easy Money?

Tax Matters

If Bush delivers an across-the-board tax cut-even if it doesn't amount to the near $1.6 trillion over 10 years he's angling for-entrepreneurs should have more money in their pockets come tax time 2002. "The Bush administration will have a bigger appetite for tax cuts," says Clint Stretch, director of tax policy for Deloitte & Touche. "That means tax rate cuts, the biggest thing small businesses could get." There may be some relief on estate taxes, which top out at about 55 percent compared with the top income tax rate of about 40 percent. "We have to bring those back in line," says Stretch, who thinks it likely Bush will ask Congress to repeal the estate tax. Entrepreneurs can also expect a package of small-business incentives, he adds, "the sort that Republicans tied to the minimum wage bill in 2000-increase in spending allowance, increase in self-employed medical, more deductions, among others."

The nation may have to wait until summer to find out how much tax relief it's going to get, however. Stretch says, "What drives congressional timing tends to be largely unrelated to the executive branch."

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This article was originally published in the March 2001 print edition of Entrepreneur with the headline: Easy Money?.

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