To provide small business owners with vital information on the impact of the so-called millionaires tax, NFIB hosted an information webinar. Adam DoVale, Director of State and Local Tax for Andersen, presented on how small business can avoid or mitigate the financial impact of this onerous tax.
The income tax surcharge, or Question 1, passed on the November 2022 ballot. It imposes a 4% surcharge on all income over $1 million, essentially ending the state’s 5% flat tax rate. The supposed intent was to raise taxes on wealthier earners, but pass-through small businesses like LLCs, sole proprietors, subchapter s corporations, and partnerships will also face higher tax rates. While most smaller businesses will not trigger the tax annually, owners may exceed the $1 million threshold when the business is sold depleting their retirement savings.
You can watch the video here.
