Owning a small business doesn't come without it's challenges. However, turning an interest into a business may become a little more difficult due to a tax-extender bill that is in Senate. The bill that is currently in Senate would ensure that unemployment payments aren't cut off to some jobless workers, along with preventing a cut to doctor's Medicare payments. However, the bill also includes provisions to include a $250 deduction for teachers, and an extra $500 deduction for property taxes. The passage of the bill would try to curb the amount of loopholes that some small business owners may take advantage of, since small businesses do not usually pay federal income tax as the report of income or loss is reported on individual income tax returns. A similar bill was passed by the House in May, that states that certain service-based small businesses should treat profits as payroll. This provision, has just been added to the Senate bill, and would take away some breathing space from small business owners, since many times the consultant or service provider doesn't take all the profits as wages since the money may be earmarked for something else. According to the Small Business Association, as of 2005 small businesses represent 99.7% of businesses in the U.S. and employ more than 55 million people.  |