
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: July 18, 2014
Of Counsel
732-568-8360 jmcdonough@sh-law.comIn 2012, Kansas lawmakers passed a large income tax cut that was intended to reduce revenue from taxes by a little more than 10 percent, according to Josh Barro writing for The New York Times. Gov. Sam Brownback said at the time that these cuts would create “tens of thousands of jobs,” which would more than justify the cut. This cut reduced tax rates and increased the standard deduction, as per usual, but also eliminated the tax on a number of income types entirely, including that on 1099-MISC income, which is sometimes referred to as “small business income.”
Unfortunately, these cuts may have had an unintentionally large effect, as the state expected to collect $651 million from personal income tax in April and May, according to the news source. It received $369 million.
Unfortunately for Kansas, it seems that the tax cuts are also doing little to effect job creation, and employment figures have trailed both the national average and those of most surrounding states since he signed the bill, Barro explained.
Part of the problem may be a misunderstanding as to what “small business income” is. While there exists a stereotype of small businesses as the employment leaders that drive the economy, many on-paper small businesses do not employ anyone. A writer who freelances for a variety of publications, for example, is considered a small business, as is a contractor and anyone else who works for him- or herself.
Another problem is that many people are able to “shift” income from one category to another. By eliminating tax on 1099-MISC forms, Kansas made it extremely attractive to collect income in this way.
Finally, an economic study conducted in 2013 and published in The Review of Economics and Statistics found that, while new companies create more jobs than old ones, small companies were no more likely than large companies to create jobs.
Find out more about the changes going on in the Sunflower State:
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!