Higher Taxes During a Recession? Say it isn’t so . . .
Alas, it is true. President Obama on Wednesday signed into law a massive new entitlement increase known as the State Children’s Health Insurance Plan (SCHIP). To pay for this new entitlement, the bill raised the federal excise tax 156 percent $1.00 per pack from
$0.39 per pack.
However, lost in the discussion is how this will negatively impact
thousands of small business owners who will have to pay the higher tax
on their current inventory. This will crimp their cash-flow at a time
when the recession is already crimping their cash-flow. So while we are
debating a $900 billion dollar spendulus package, we hit small
businesses with a huge tax increase. How’s that for stimulus?