How tax cut deal would affect small businesses
December 13th, 2010
07:39 PM ET

How tax cut deal would affect small businesses

A lot of Democrats are not happy with President Barack Obama's deal with Republicans to extend the Bush-era tax cuts for all Americans, but many small-business owners are.

CNN Radio's Jim Roope talked with Louie Cardona, owner of Cardona Manufacturing in Burbank, California. The precision machine shop produces parts for everything from cars to aircraft. Cardona explained what benefits a tax cut extension would have for small businesses.

"The main reason, of course, is because it would give us the same tax structure we'd been seeing the past several years," Cardona said. "If I had to pay more in taxes, I wouldn't have the money to reinvest in machinery."

Cardona said his business is about 30 percent down over the past two or three years, and he doesn't see things getting any better soon. So, he would be very happy with the tax cut extension if Congress approves it.

"It gives us more money in our pocket,” Cardona said.

CNN Chief Business Correspondent Ali Velshi confirms what Cardona said.

"This really doesn’t have the same stimulus effect as an actual tax cut," Velshi said. "It's an extension of something you are already not paying."

To hear the complete story, click on the audio button.

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Filed under: Economy • Taxes
soundoff (29 Responses)
  1. ProtoMan

    Dr.Bad is in the "6 killed in Afghanistan are Americans" blog a few posts down. He has a new handle I think. Scary

    December 13, 2010 at 10:41 pm | Report abuse |
  2. RUFFNUTT

    if we had more jobs instead of sending them to china we would have more tax money..

    @protoman
    if you drug tested people on unemploymeent and welfare i'd say 90% are on drugs.

    December 13, 2010 at 10:43 pm | Report abuse |
  3. tomcat

    @cesar so you live in Texas, right? no doubt Austin the liberal hang out

    December 13, 2010 at 10:43 pm | Report abuse |
  4. ProtoMan

    @Orion: I'd kinda agree. There are definitely some who are just lucky, but the innovators of certain industries are certainly intelligent. Entertainers are mostly dumb, but many had to suffer and work hard to get that lucky break. If we're talking politicians most have these ivy league degrees, yet are either dumb or corrupt. A guy who learns a trade, saves his $ then starts a business didn't sit on his rear complaining about things others had. It's a wide spectrum. Bill Clinton's IQ is 150, but he did some pretty stupid stuff. Things are weird like that. Maybe it's God's sense of humor.

    December 13, 2010 at 10:48 pm | Report abuse |
  5. Billy Bob the Backhoe operator

    Just praying we can keep these wars going long enough to get a job in Afghanistan or Iraq.
    And I can neither confirm nor deny that I do or do not have a job. Makes no difference. I have never and will never use drugs. Not even the kind you get at a proper drug store like Walgreens.
    However, then again I would not be opposed to tending a poppie field if it provided the means to support my wife and children.
    This might seem hypocritical but a man will do what he has to do to care for his loved ones.

    December 13, 2010 at 11:00 pm | Report abuse |
  6. ProtoMan

    @ RuffNutt: perhaps. When I did construction many whom got laid off were collecting their unemployment while working on the side for cash. This was during the most recent boom when work was out there. I don't know about 90% but certainly enough that could funnel more money to people who truly need the help. If you can buy an ounce of weed every week then obviously you don't really need the free money that's designed to keep families from starving. Our government even subsidized digital tv converter kits for poor people. Lol we need to raise the bar a bit I think.

    December 13, 2010 at 11:06 pm | Report abuse |
  7. Jim Morrison

    I'm all for helping the needy and those UNABLE to work. Ya know, most tax paying ppl wouldn't look down on "out of work", and welfare receipients, if they would contribute to our Society in any number of ways. It's the fact that they get OUR tax dollars and don't have to fo a thing for it, while WE WORK!

    December 13, 2010 at 11:24 pm | Report abuse |
  8. ProtoMan

    I'd like to end all foreign aid to countries that don't have our interests in mind. Like narcotics production or terror. I wonder how many Americans would benefit from that $.?

    December 13, 2010 at 11:33 pm | Report abuse |
  9. RUFFNUTT

    there's jobs out there but they might only pay 8-10$ an hour.. the problem i think is the days in the past where 1 person could get a job and provide for a family are over. all the real factory-type jobs are gone. whenever i've been laid off i'v always been able to find a job within a week or two. some of the jobs sucked but atleast i never have claimed unemployment.

    December 13, 2010 at 11:40 pm | Report abuse |
  10. ProtoMan

    @Ruffnutt: My grandfather went from being a mechanic to being a taxi driver and he was able to support a family of 6. Families now have to pay insurance and education expenses. When the system was simpler people could do more with less I think. Things really aren't that bad for most, but we need to stop worrying about a global economy. Our officials should worry about us first then help others with what's left. Good convo I'm off to bed.

    December 13, 2010 at 11:56 pm | Report abuse |
  11. Cesar

    @Tomcat: True, overall, Austin is a bit liberal, also full of college students. @Protoman. Countries always retaliate on the tarrifs.

    December 14, 2010 at 12:49 am | Report abuse |
  12. coffegirl

    Consistant comments, the rich are greedy and the poor are doing drugs, stupid and lazy. If only everything were so black and white. Nonsense. A proper company would not be affected by the tax increase, it is a personal income tax, not a corporate tax...A smart company would be incorporated and not affected. A small company can easily split it's revenue into different pockets to avoid the 4% above $250K. All of this is nothing more than Political propaganda so the Govt. has a reason to not change anything and get paid to do it.

    December 14, 2010 at 10:31 am | Report abuse |
  13. Emile Zola

    When you want an honest opinion, you go that an unbiased expert. If I'm going to buy a used car from a salesman, what do you think I would hear from him/her: Fair and balanced as the fixnews network claims? Heck, no. He/she knows that if he/she talks about the true condition of the car, AKA a lemmon, there will be no sale, no take home pay, ergo, the salesperson is going to tell you what they know will get you to buy the car, nothing more, nothing less. The same happens with republicans and tea partiers. What I fail to understand, other than masochist reasons, is why people that barely can make it from paycheck to paycheck, vote for republicans, tea partiers when the only thing they have in mind is the demise of the middle class and the bottom. The rich get their money back 1000s fold, republicans continue their representation of their owners and then, lo and behold, I see the seniors crowd along with the Alzheimer's one protesting against the government providing Medicare for others, something that they not only have, but would rather die than for anybody to pry it from their dead bodies first and the masochists voting the oil snake peddlers back for more misery, more Appalachian poor: No teeth, no indoor plumbing, no schools, no health care and the citizens think we are not a third world country. Isn't this the pot calling the kettle black? U betcha I was under the impression that republicans, tea partiers care for deficits. They huffed, they puffed, they blowed when the third Bush term, Obama, was using "stimulus" money to save the auto industry and the economy, but when it was to save 98% of Americans, they were nowhere to be found and this gets even scarier, now we are talking 900 billions that the children of future generations will have to pay to China and others, while making sure that those future generations will not get to live as long, nor better, but worse that their parents. In other words, we are going backwards instead of forward until we get to the Stone Age. Bravo, tea partiers, republicans.

    December 14, 2010 at 11:21 am | Report abuse |
  14. teaPARTYdemocrat

    I love it when Beck says "let's take the country back" He means back to three years ago when gas was $4 a gallon, everybody was flipping houses and banks were gambling with our deposits.

    December 14, 2010 at 1:44 pm | Report abuse |
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