So how do you "duck for cover"?
Re-incorporate as a foreign owned/based business? Our legislature seems to be fine with allowing the mortgaging of america to foreign entities. If you can somehow become a foreign entity, you can probably avoid all sorts of tax liability.
No... I'm not really advocating this method of tax dodge. I'm just frustrated at those that would repeal the tax breaks that have made the small business sector flurish over the two past decades. It has been shown that small businesses account for more new job growth than "big business". So why target us?
If you seriously are concerned about tax liability and changes to the tax code, your first step should be to seek out a CPA or Tax Attorney. They can tell you how to take advantage of tax breaks in the code and can tell you when those tax breaks go away (if they have sun-set provisions). The 179 deduction, the estate-tax breaks, the capital-gains tax breaks, and various other incentives to invest have deadlines after which they either must be renewed or they go back to the old-higher rates. That is huge when it comes to capital gains. For instance: If you were to sell your business today and qualify for long-term capital gains, you would pay 15% on the capital gains portion of the sale. But if five years from now, the capital gains tax goes back to the old rate, you will get hit for over 30% if I'm not mistaken. I'll have more definitive examples tomorrow as I start cramming for my Accounting & Financial Statements for Lawyers exam.
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