Fiscal Cliff Raises New Issues For Small Business

Small business owners who are worried about the so-called fiscal cliff are concerned beyond their own finances — they’re also uneasy about higher taxes on consumers, according to a new survey.

The survey, commissioned by Small Business Majority, a lobbying group, and released Wednesday, found that owners are most worried about losing tax breaks that they feel will help their companies, such as high deductions for equipment purchases. They are equally concerned that a 2 percentage point increase in payroll taxes will force consumers to cut spending, leading to less revenue for small business.

The results of the survey indicate that business owners generally aren’t focused on one of the most highly publicized aspects of the cliff, an increase scheduled to begin Jan. 1 in tax rates on individuals earning $200,000 or more or households earning $250,000 more. During the election campaign, Republicans including presidential nominee Mitt Romney contended that small business owners would be hurt by that increase, and that they would cut back on hiring new workers. 
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