Carol Walker is thrilled with the historic election of the first African-American president in the more than 200-year history of the United States, but like many small businesses across the nation, she is anxious to see if president-elect Barack Obama's economic policies can help restore the battered economy.

"We're in troubled times, and I'm hoping he has answers," said Walker, manager of community relations for the Freedom Festival and vice president of public relations for Zions Bank.

Many in Utah County's largely pro-Republican business community are taking a wait-and-see approach, expressing concerns about Obama's tax policy proposals.

Stephen Clark, director of the small business development center at Utah Valley University, is particularly concerned about how Obama's proposed $250,000 income threshold for tax increases will affect those small businesses whose owners report company profits in their personal tax returns. These include subchapter S companies, limited liabilities companies, sole proprietorships, home-based businesses and partnerships, he said.

"The more taxes a small business pays, the less money they have to grow their business, pay for inventory and create jobs," Clark said. "I'm hoping the Obama administration will understand that the biggest share of money that's identified in the $250,000 income threshold comes from small businesses. There needs to be some way of identifying or segregating small business income from personal income."

Around 90 percent of businesses in Utah County are small businesses, and these generate about 70 percent of the jobs here, Clark said.

Obama's plan to raise the top two federal income tax rates could potentially increase taxes on between 663,000 and 1.3 million small businesses nationwide that file taxes under personal income categories, according to analyses from two tax groups.

The Tax Foundation contends that Obama's tax increases could amount to a $30 billion annual tax increase on 1.3 million small businesses in higher income brackets. Another analysis by the Tax Policy Center says 663,000 of the 34 million personal income tax filers who claim business income are in the top two federal tax rates eyed by Obama.

But Obama supporters challenge these opinions, pointing to other benefits in his tax plan for small businesses. These include zero capital gains for startup firms, two-year tax credits for domestic job creation, middle and lower-income tax rebates, and credits for mortgage interest, college and health insurance.

Still, local businessmen like Brandt Andersen express hope that Democrats won't raise taxes in the middle of the economic downturn.

"Any sort of tax increase now will be bad because the economy is bad," said Andersen, a Provo entrepreneur and Utah Flash owner. "But after we move out of the recession, taxes will have to go up in the long term."

"No one wants to pay more taxes. But it's better to take a smaller piece of a larger pie than take a piece of nothing," he said.

Clark agreed. "Many small businesses are struggling. Consumer spending is slowing, and business costs are also going up," he said. "If the Obama administration does what it says it will do to small businesses, that will be the third nail in the coffin."

Steve Densley, president of the Provo-Orem Chamber of Commerce, believed many businesses are also upset at Obama's statements about the "redistribution of wealth," and are suspicious of what they perceive to be a socialist agenda.

"Most of the business community in Utah was supportive of McCain, but not many rallied to the fact that he knew much about business," Densley said. "This whole thing about 'redistributing wealth' is good if it's voluntary, but if forced, that's a different story.

"Republicans got sent a harsh message [Tuesday] night. There's a need to get back to Reagan principles of the economy -- that of free enterprise, allowing businesses to compete and expand with minimal government intrusion," he said. "I'm thrilled that Republican candidates won in Utah County. That's because we have strong legislators who've done a good job of being fiscally responsible."

On his wish list, Densley hopes to see more definitive efforts made to develop alternative energy sources in America -- to reduce its dependency on foreign oil, which he believes is crippling the economy. Health care reform and more investment in education are other issues he hopes will be addressed by the new government.

Maht Paulos, owner of Coal Umbrella, a downtown Provo vintage clothing shop, said it was too soon to tell what the election results would mean to small businesses, but that he hopes to see heavier investment in small business development.

"It's scary to think of taxes rising. But I feel we can adapt and succeed regardless of who is president," he said. "Some of my closest friends aren't U.S. citizens and see Obama's election going a long way to rebuilding America's image around the world. And we need the support of the world."

Andersen agreed, saying, at first glance, the election of Obama brings "incredible hope" to many on Main Street across the nation, and speaks volumes about America to the world.

"His election also says a lot of the racial issues we've had are no longer there," he said. "Utah is a Republican state and this county is entrenched Republican. But the key focus is how to get the economy better, and not focus on party politics."

"Things can't get any worse," Andersen said. "At worst, if he doesn't deliver, we'll have another Republican again in four years."