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Increasing Taxes Hits Small Business Job Creators
ATRF ^ | 2012-07-27 | Hugh Johnson

Posted on 07/30/2012 1:12:00 PM PDT by 92nina

Taxing small business to pay for more government is the policy equivalent of “you didn’t build that.” Increasing taxes on the top bracket—$200,000 single; $250,000 married—hits small businesses, sole proprietorships and family farms that file as individuals or “pass through entities.”

In 2011, the nonpartisan Joint Committee on Taxation estimated that this plan hits 750,000 entities. A more recent update in their model concludes that, under this plan, 940,000 small businesses will pay higher taxes.

The economy grew 2.0 and 1.5 percent in the last two quarters. Growth in real nonresidential fixed investment declined for the third straight quarter. RNRFI is an indicator of how much businesses spend on new or improved facilities and technology from quarter to quarter. It is an important measure of how much the private sector is growing and planning to grow since the new equipment is used to expand operations, hire more people and increase overall prosperity. It seems, then, that the private sector is not “doing fine.”

So the economy is in a stall, businesses are investing less and less in pro-growth measures like expanded production capacities and hoarding cash. Meanwhile, Congress is talking about raising taxes on 940,000 small businesses which comprise 75 percent of all small businesses in the country. As Americans for Tax Reform noted, the top 3 percent of small businesses employ a majority of everyone who works for a small business. Raising taxes on these businesses in a good economy is bad policy, in a recession it is a recipe for economic contraction and further job loss.

This content is provided by the Americans for Tax Reform Foundation.

Read more: http://atr.org/increasing-taxes-hits-small-business-job-a7080#ixzz228egjuOf


TOPICS: Business/Economy; Government; Reference; Society
KEYWORDS: congress; economy; govtabuse; taxes
Increasing the top tax rate impedes economic growth preventing small businesses from expanding out of this recession.
1 posted on 07/30/2012 1:12:11 PM PDT by 92nina
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To: 92nina
The big-government/big-corporate monopoly doesn't like or need small businesses.

They just want their monopoly, so they use laws to eliminate their small-business competition.

2 posted on 07/30/2012 1:17:11 PM PDT by E. Pluribus Unum (Government is the religion of the collectivists.)
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To: 92nina
Obama doesn't care about top tax rates....he wants it all. He doesn't care about making things easier for entrepreneurial business creating new jobs...why in the hell would he?

Why, he's recently changed the definition of ‘work’ for TANF - temporary [bwaahaa] assistance for needy families that replaced welfare - to include getting a friggin massage or ‘thinking’ about looking for work (i.e, THERE IS NOW NO WORK REQUIREMENT TO GET WELFARE)....

He's LOOKING to put as many people on welfare, UIC, etc. that it will cripple us to the poor house - and then he can implement his new order. Why in the hell don't people realize this?

3 posted on 07/30/2012 1:19:30 PM PDT by Gaffer
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To: 92nina

Personally I don’t think Obama has a clue that there are small businesses and family farms/ranches that file as individuals. After all he hasn’t so much run a hot dog stand and sees all business through a Marxist perspective. To him anyone getting $200,00 or more is “rich” and should have their money taken by the government in higher taxes. Showing a business income of $200,000 is a heck of a lot different than having a $200,000 salary


4 posted on 07/30/2012 2:28:32 PM PDT by The Great RJ
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To: E. Pluribus Unum

So true.


5 posted on 07/30/2012 2:39:59 PM PDT by 92nina
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