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Your Jewelry Store Is Unlikely to Pay Higher Income Taxes Under Biden: Treasury

New analysis says proposed tax hike won’t impact 97 percent of small businesses.

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Ninety-seven percent of small business owners won’t face an income tax increase if President Biden’s tax plan becomes law, according to a recent analysis from the U.S. Department of the Treasury.

The analysis looked exclusively at small businesses filing as S-corporations, partnerships and on individual income tax returns. The Treasury said nearly every small business falls into these categories and is thus not subject to a corporate tax. Instead, these businesses report income on the owner’s individual tax return and are taxed at individual income rates.

Under Biden’s plan, the corporate tax rate would rise from 21 percent to 28 percent, and the top marginal individual income tax rate would be restored to 39.6 percent. These changes would affect less than 3 percent of small businesses, according to the analysis.

The White House said the increased tax revenue would go toward investments in education, child care and fighting climate change. The administration’s full statement on the Treasury analysis can be found here.

For its part, the U.S. Chamber of Commerce opposes the tax hikes, saying there are 1.4 million small businesses that file as C-corporations and will have to pay a corporate tax. There are more than 30 million small businesses in the U.S., according to the Small Business Administration.

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When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”

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