The majority of U.S. manufacturers are S-Corps or other flow-throughs, so it’s not surprising that their executives are biting their nails about potential increases in the individual income and capital gains taxes. RSM McGladrey was surprised by the extent of the angst, though, when it polled 23,000 C-level execs at manufacturing and distribution companies, mainly in the small to midsize sector that forms the accounting firm’s core client base.

Fully 87 percent of survey respondents said that they’re concerned or very concerned about increases in individual tax rates.

For the capital gains outlook, the number of very/somewhat concerned respondents was only slightly less, at 84 percent.

The full RSM McGladrey report is available here (requires a very quick and easy registration). It’s a salutary reminder that taxes of all types impact business and that increases in individual tax rates may inhibit growth in one of the key sectors of the economy as it claws its way to recovery. ###