From businessmen fighting the LLC Tax
The leaders of the Ways and Means Committee had a secret meeting on Wednesday to discuss the new “Rules” by which the State is going to impose this new Small Business Income Tax aka the LLC tax. What they really did was to get together and create a way to try and spin away the fact that they have significantly expanded new and additional taxes on small business and make the Small Business Income Tax even more invasive than when this started.
While they put out press releases on Wednesday, claiming to have “listened” to us during the hearings and claiming to have made the state oversight into our companies less invasive, at the same time they were making this claim, they have dramatically increased what the State of New Hampshire is going to consider “Small Business Interest and Dividend” and create new, additional taxes on us.
This is a link to the New Rules from DRA (which are complicated) to tax small business owner further and please go to page 7 – 8 where you will see that the State is now saying that they will include the following in the calculation as Interest and Dividends and tax us on it…
Rental Income
Operational Business Profit
Interest Income
Royalties
Short Term Capital Gains
Long Term Capital Gains
Gains on the sale of Collectibles (yes they are going to TAX your RedSox baseball card collection….)
Tax-exempt income
1250 gains
“other income”
So, overall the same issues we are concerned about still exist:
This is a new tax that when combined will be 13.5% on our personal income
Record keeping for small businesses to try and defend ourselves will cost $500-$5,000/yr
We are being faced with double taxation – which is unconstitutional
The 5% tax on refinancing (although is out of the rules), still is in the new law passed
The only real protection we have against this assault on our small businesses is to get repeal of this job killing tax!
So how do we do it?
First contact Governor Lynch at 271-2121 or email him at Governor Lynch and ask him to repeal this bad tax.
Additionally, the contact information of the members or the Ways and Means committee can be found here: Ways and Means Contacts
Please contact the members and ask them to repeal this jobs killing Income Tax on Small Business owners and refocus HB 1607 (Reasonable Compensation) to protect small business owners, not prosecute small business owners.
Please help us create jobs, expand our economy, and make New Hampshire great again!!