Roni Deutch, The Tax Lady, Believes President Obama's Proposed Tax Changes Do Not Go Far Enough to Help Small Businesses and the U.S. Economy

Roni Deutch Tax Center
Published: January 29th, 2010

Leading Authority on Taxation Examines the Reality of Obama's Proposed Tax Changes

SACRAMENTO, Calif.--(BUSINESS WIRE)--Roni Deutch, a leading authority on taxation and author of The Tax Lady's Guide to Beating the IRS, says that the new policies proposed last night by President Obama do not go far enough and may not be the solution to creating more jobs and revitalizing the economy. During The State of the Union Address, President Obama projected that new tax credits for small business owners would incentivize hiring and revitalize the failing economy:

• Suspending Payroll Taxes for New Hires:
  Roni Deutch argues that overall, payroll tax hurts both employees and businesses by reducing profitability for companies and dropping take home pay for the employee.
  
  "An elimination of the payroll tax altogether could have a far greater impact on the American economy than the Making Work Pay Credit," projected Deutch. "Without the payroll tax, every working American would see a 7.5% increase in take home pay, which means more money to stimulate the economy."
• Providing Tax Credits For Small Business Hiring:
  Another red flag Roni Deutch points out is the implementation of tax credits for small business who hire new employees. Deutch questions the regulation of this new tax change and worries that this could lead to a false improvement. "The new hire tax credit could create some abuses by employers," warns Deutch. "A business owner could fire one full-time employee and hire two part-time employees to get double the credit without positively impacting the economy. Another tactic could be to fire then rehire existing staff without adding any new jobs to the economy."
• Eliminating Capital Gains Taxes on Investments in Small Business:
  Deutch, also a small business owner, applauds Obama's efforts to remove the capital gains taxes for small business. The backbone of the American economy is small business and the elimination of capital gains taxes provides incentive to invest in entrepreneurs and new companies. "While this would be great, President Obama's proposal does not go far enough. The next step should be to eliminate all capital gains taxes and not just for investments in small business," said Roni Deutch. "The removal of capital gains tax would spur a dramatic stimulation of the economy."

ABOUT RONI DEUTCH

Roni Deutch is one of the nation's leading authorities on taxation and has worked as a tax attorney since the early 1990s. A respected expert in the tax industry, Roni Deutch is frequently a guest on CNN, CNBC, ABC News and FOX Business Network. She has been featured in many print articles, including Forbes, Essence, Wall Street Journal Digital, Los Angeles Times, Chicago Sun-Times, Sacramento Bee, Houston Business Journal, and the Atlanta Journal-Constitution. Roni is also a regular columnist on WomenEntrepreneur.com. In 2009, Roni published her first book, The Tax Lady's Guide to Beating the IRS and Saving Big Bucks on Your Taxes, which was an instant success and released the new 2010 edition in January. She is also the founder of Roni Deutch, a Professional Tax Corporation, the nation's largest tax resolution law firm, and the Roni Deutch Tax Center, the nation's fastest growing tax preparation franchising company