Fiscal Cliff May Hurt Small Business Owners
KREX News Room
GRAND JUNCTION, Colo.- Paying your taxes is inevitable, but according to financial experts, dishing out some more money may also be on the horizon. That is, if a compromise on the fiscal cliff isn't made in time.
“If we go over the fiscal cliff, taxes will increase,” said John Hildebrand, president of business development for Autopaychecks, Inc.
A deadline is set for the end of the year, but if politicians can't negotiate the issue on hand before than, that means an automatic tax increase for everyone.
Which is something Hildebrand says will greatly affect local businesses.
“For successful small business owners here in town, they are going to see up to $30,000,” said Hildebrand. “When business expenses go up, they tend to employ less people.”
Though officials at Browns Shoe Fit Co. in downtown Grand Junction don't think they will have to lay off anyone, owner Gregg Palmer says the possible tax increase is sure to put a dent in any wallet.
“You're coming into the first quarter which is always a little bit more difficult and a little bit leaner for most people,” said Palmer. “To have this on top of it isn't going to help things.”
“Anytime taxes go up, anytime you have any expense that goes up, something has to give,” said Barbara Traylor Smith, financial expert.
If companies aren't able to increase their revenues to cover additional costs, in this case, a tax increase, officials say you have start cutting.
“Local businesses have to get lean, they have to get smart about doing business,” said Hildebrand.
Officials say historically, when politicians go over the deadline, they quickly come to an agreement because of all the pressure.
Economic experts are also warning that failure to avoid this fiscal cliff could bring on a recession.