Tic Tax Toe You might win tax breaks if a new bill plays out in your favor.
Opinions expressed by Entrepreneur contributors are their own.
Lining up the elements of a 2003 stimulus bill will be a game oftic tax toe. Items with bipartisan support, such as a payroll tax"holiday," are likely to get an "x" in theirbox. But don't expect a permanent elimination of the estate taxin 2011.
With the holiday, employees and business owners won't haveto pay the 7.65 percent tax for a limited period of time. Sen. JonCorzine (D-NJ) has championed the idea, and Sen. Mary Landrieu(D-LA) used it as a signature issue in her victory in a Decemberelection. The Business Roundtable, an influential group ofcorporate chief executives, and some Republicans support the ideaas well, making it a strong contender for any stimulus package.
Todd McCracken, president of National Small Business United(NSBU), supports a holiday because the payroll tax hits smallbusinesses harder than large businesses. Small-business owners pay7.85 percent on their own salary, while corporate CEOs don't."But we have to be careful that a holiday for the businessowner's share doesn't get lost in the politicalhorse-trading over the package and its total cost," McCrackenwarns.
It will be more difficult, however, for Republicans to getDemocratic support for the permanent elimination of the estate taxin 2011. Congress phased the estate tax out over 10 years in the2001 tax bill with it ending in 2010, but it returns in 2011.Former Clinton administration Treasury Secretary Robert Rubin hasadvocated keeping the estate tax (which applies to estates over $1million) for estates worth over $7 million. But NSBU and othersmall-business groups still want to see the estate tax permanentlydisappear.
Stephen Barlas is a freelance business reporter who coversthe Washington beat for 15 magazines.
