Would Expiring Bush Tax Cuts Affect Business?

Thats the question many Repbulicans are questioning.  They argue that most of the people that would be affected by extending the tax cuts are small business owners.  They feel that extending cuts would enable business owners to invest more into their company.  However the problem is that a lot of small business owners don't make $250,000 or more per year.  The Democrats contend that giving tax cuts to the rich will not erode the economy. 

Many of the business today are sitting on cash because they are uncertain of the future.  Companies are not willing to hire until a much clearer picture of where the economy is going develops.  Companies that are making money and the owners who run them say they would make different decision based on if the Bush tax cuts are not extended. 

Over the last few decades, changes to the tax code has many companies reporting their income on the individual income.  A S Corp filing with the IRS allows corporations to report their income on personal tax returns.  This means that companies making millions of dollars, those millions of dollars are being reported on individual tax returns.  Corporation are not getting taxed anymore as they did before with C- Corps.  Therefore the argument is that the companies making millions of dollars are not being funneled back into the company because the individuals are getting taxed more.

The response to this is that these rich individuals could in fact pay themselves less and invest the saved money back into the company.  Therfore the impact of the Bush era tax cuts that are expring will probably not effect the company.