Distributor Center / News

Johnstone Supply Hosts Congresswoman to Discuss Tax Hike

August 13, 2012
Johnstone Supply hosts Congresswoman Kristi NoemDick and Glenys Hull of Johnstone Supply in Sioux Falls, S.D., hosted Congresswoman Kristi Noem in a small business roundtable recently to discuss looming tax increases if the current tax rates are allowed to expire at the end of the year. In July, the Senate passed an extension of the current rates for middle and low income Americans, but not for higher earners, a position supported by President Obama. The tax increase would fall on individuals who make $200,000 or more and couples who make $250,000 or more. The Hulls established a relationship with Rep. Noem at the last HARDI Congressional Fly-in.

“This proposal shows me just how little our President and many of our leaders understand about small business in America,” said Rick Hull. “My wife and I are owners of a small business. We live and breathe it every day. Our company is classified as an S Corporation, and we will be adversely affected by the President’s proposal. Last year, we bought new equipment and hired three new employees. This year, we’re hoping to invest even more in new trucks and new workers. We’re even discussing plans to expand. But increased taxes will mean our company will make fewer purchases, experience less growth, and provide fewer jobs.”

A tax increase on pass-through organizations could result in lower wages, scaled back benefits or reduced employment. A “pass-through” organization is organized as an S corporation, partnership or sole proprietorship and file taxes at the individual rate. There’s a push to extend the current tax rates that President Bush signed in 2001 and 2003 and President Obama extended in 2010.

“The president talks about raising taxes on millionaires and billionaires, but his plan would actually raise taxes on small businesses in South Dakota and across our country,” said Rep. Noem. “Ninety-five percent of South Dakota employers pay taxes at the individual rate, meaning this tax increase could impact them in a big way. These are businesses that pay the wages that allow hundreds of thousands of South Dakotans to put food on the table, pay mortgages and save for the future. South Dakotans already send enough of their hard-earned paychecks to Washington, that’s why I’ll be voting next week to extend tax relief for all Americans.”

Publication date: 8/13/2012

 

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con