Dunkin' Donuts, McDonald's Franchises Warn of Job Cuts
Franchise group warns of Obama tax increasesOctober 4, 2011 RSS Feed Print President Obama's new goal of raising tax rates to nearly 40 percent would kill small businesses and force others to dump employees onto unemployment lines, warns a trade association that represents franchises like Chick-fil-A, Dunkin' Donuts, RE/MAX and McDonald's.
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"Uncertainty by small business owners does not lend itself to job creation and future investment," warned the International Franchise Association, which is the nation's largest trade group for small franchise operators. "The majority of our members will not be able to create jobs until business conditions improve," the group said in a letter sent to the so-called Super Committee that's looking at ways to trim $1.5 trillion in spending and cut the deficit.
Since many franchise owners file as individuals or "S corporations," warns association President Steve Caldeira, they would get hit on one side with the elimination of corporate tax loopholes and on the other with a higher individual tax rate. Under the Obama plan, corporations would benefit from the loss of tax loopholes by paying a smaller tax, something that wouldn't be extended to individuals. Caldeira urged the panel to make an adjustment for little business owners.