Impact Of Proposed 2009 Tax Increase

Company Profile (S‐corporation) Gross Income Annual Payroll Employees

2008

Scheduled Governor

$3,730.47 $3,730.47 $0.00

% Tax Increase

Current Governor

$6,414.80 $6,414.80 $0.00

% Tax Increase

Current Governor

$10,691.34 $10,691.34 $0.00

$784,000 $348,252 17 average per payroll

2009

Impact at the Corporate Level 2010 2011

$2,439.65 $3,730.47 $1,290.82 53%

Capital Stock & Franchise Tax $1,148.83 $0.00 $3,730.47 $3,730.47 $2,581.64 $3,730.47 225%

2012

2013

Tax paid

$0.00 $2,439.65 $2,439.65

$0.00 $1,148.83 $1,148.83

$11,191.42

PIT on money available for investment $6,414.80 $6,414.80 $6,414.80 $6,414.80 $7,459.55 $7,459.55 $7,459.55 $7,459.55 $1,044.76 $1,044.76 $1,044.76 $1,044.76 16% 16% 16% 16%

$6,414.80 $6,414.80 $0.00 0%

PIT on  all Salaries (including owners) $10,691.34 $10,691.34 $10,691.34 $10,691.34 $12,432.60 $12,432.60 $12,432.60 $12,432.60 $1,741.26 $1,741.26 $1,741.26 $1,741.26

$10,691.34 $10,691.34 $0.00

$6,965.04 $3,600.00

Health care Premium tax

$720.00

$720.00

$720.00

$720.00

$720.00

Combined % Tax Increase

25%

33%

42%

35%

11%

$4,796.84

$6,087.66

$7,236.49

$5,945.67

$1,868.83

Tot Add'l small business tax

$4,179.02

$25,935.48