Atlas PUKED!!!
Posted on 10/27/2007 6:35:30 AM PDT by Kaslin
Lost in the hoopla over Ways and Means Chairman Charlie Rangel’s (D-NY) “Mother of All Tax Reforms” to repeal the Alternative Minimum Tax and reduce the corporate tax is the plan’s punitive tax increases on small businesses – especially small and closely-held exporting firms.
Small businesses are the engine of job creation in the economy. According to the Department of Commerce, small firms employed 50.9 percent of the nation’s non-farm private labor force in 2004. These 5.9 million small businesses employed 58.6 million people. Small businesses have generated 60 to 80 percent of net new jobs annually over the last decade.
Additionally, small firms accounted for 97 percent of all identified exporters and produced 28.6 percent of the known export value in 2004, according to the Small Business Administration.
The Rangel tax reform bill takes direct aim at America’s job-creators. It would raise the maximum marginal tax rate on all small business income – wages, distributions, capital gains, dividends – by four percentage points (from 35 percent to 39 percent) through the creation of a new surtax applied to incomes above $150,000. Curiously, this surtax is applied to Adjusted Gross Income, not Taxable Income, so it comes before deductions. That means it is really like a five or six percent surtax on taxable income because it reduces the value the home mortgage, charitable, and other itemized deductions.
In addition to the tax rate increase, the bill also eliminates several tax provisions small businesses rely on in order to remain competitive. It repeals the hard-won domestic producer tax deduction we enacted just three years ago to help encourage manufacturing and domestic production here in the United States. It eliminates the LIFO ("last in, first out") accounting rules, so small manufacturers will now pay higher taxes when inflation increases the value of their inventories. And finally, to add insult to injury, it does nothing to prevent the expiration of the Bush tax rate cuts, which means small firms – S-Corporations, sole proprietors and others that file as individuals - will face a top marginal rate of 44 percent starting in 2011.
Small and closely-held U.S. exporters take a hit too. Our growing export community is the lone bright spot in an economy besieged by a housing and credit crisis. The Rangel bill would repeal the last export tax benefit in the tax code. This provision, known as the IC-DISC, was implemented to help small exporters compete in international markets.
And it works. According to the accounting firm RSM-McGladrey, nearly 40 percent of responding mid-sized manufacturers said they utilize the IC-DISC to make their exporting business more competitive. The Rangel tax reform proposal would eliminate this export tool and raise the tax on income from these exports from 15 to 39 percent!
American firms are facing fierce international competition. Repealing a pro-export tax benefit – and raising tax rates on top of it – amounts to unilateral disarmament in the battle for global market share and jobs, especially given that many other countries allow their companies to exempt export income from taxation altogether.
The Rangel plan moves our tax code in the wrong direction, and it sends exactly the wrong signal to those firms who have made a decision to invest and create jobs in this country. Cutting the corporate tax rate – as the Rangel bill proposes – is good pro-growth policy, but it shouldn’t be done at the expense of small unincorporated businesses.
and for those of your who failed to vote last time or voted so as to teach the errant republicans a lesson - what did you expect from these jokers you put into office????
My husband and I have a small business.
Europe has subsidies and protections for their businesses.
Congress hasn’t been much help for years (except for the Bush cuts) and now wants to cut us off at the knees.
Democrats aren’t happy until we’re all equally miserable.
Sometimes sacrifices must be made to keep our elected officials in check. If they act like a bunch of spineless liberal weenies and put up the same for election we have the duty to express our dislike at the polls. I’d rather take a step back to take two steps forward in the next cycle.
You can’t blame the Republican base when the party refuses to stick to it’s core fiscal principles.
The same thing will be repeated if they stay home, or vote for a third party candidate who doesn’t have a chance. Just because they don’t like our nominee.
“You can’t blame the Republican base when the party refuses to stick to it’s core fiscal principles.”
I think Bush’s solution to the recession he inherited from Clinton was to spend his way out of it. So yes they spent a lot of money. Heard a number yesterday that Repub’s spending was on the order of 15 billion. The Dem’s proposed spending was around 180 billion. I can’t remember but I think this was from Dr. Bennett’s show on Thursday.
Rangel knows what he is doing. According to the liberal minority inner city voting block, anyone who can afford to own a small business MUST be rich.
“and for those of your who failed to vote last time or voted so as to teach the errant republicans a lesson - what did you expect from these jokers you put into office?”
We have a two party system. Any third part is a waste of time. We need to work to improve the party of our choice. Dem’s are frothing at the mouth to send trillions of dollars in tax increases our way. No thank you!
Atlas PUKED!!!
This shouldn’t surprise anyone. Our communist governor and RINO legislature hit small businesses with numerous “fees” and taxes, including new taxes on various services. Naturally, lawyers are not included in the new service taxes.
Anyway, small businesses are fleeing this socialist paradise as are productive citizens. The tax demands of the welfare leeches, crooked state bureaucrats, legions of government workers, including teachers, and the army of state worker retirees will soon oustrip the paying ability of business and productive citizens.
All that will be left is to strip state assets to pay the ever increasing bill.
Michigan will soon resemble 1980s Albania, including thousands of refugees fleeing economic and individual liberty strangulation.
Moral of the story: Never, ever elect a woman to a political office just because she’s a woman.
Enjoying beating that dead horse, are you?
Please list all of the substantive legislation the Dim majority has passed and gotten signed into law during this session of Congress.
Let’s see exactly how bad it’s been. Here, I’ll start the list for you:
1)
Enough said.
The Mother of All Tax Hikes on Small Businesses...
the lib/dems just doing what they do best....destroy US enterprise/entrepeneurship/economic expansion!!!!
but they support the troops...so they say...well at least those that are the enemies of the US!!!
There was a REASON why all those people stayed home. Most of them were not freepers, either. I went out and voted, and so did most freepers, I’m sure.
But the average social conservative stayed home because the Republicans spent two years kicking him in the teeth. Are you surprised?
There was a long history in modern times of Evangelicals not voting, because they figured it was hopeless, and their true home was in heaven. Jerry Falwell and others managed to turn that around, and persuade Evangelicals that they are sojourners in the Earthly City, as Augustine called it, as well as citizens of the Heavenly City, and that they owed the country their concern and support as long as that was possible.
In two years, the Republicans kicked that support away. It would be more productive to think about why it was kicked away, and what could be done to start fixing the problem, than to curse the folks who stayed home because they were too discouraged to vote.
No point yelling at us, we voted. But we said that a lot of people probably wouldn’t, because of the stupidity of the Republican leadership (not Bush so much as his advisers and congressional leaders), and unfortunately that proved to be right.
If the party fails to get it this time, and nominates someone like Giuliani, then the damage will be completed, and the party destroyed. You can’t win elections if you keep screwing your own base.
reference is to the FR post above
yup , .. and that is why I like to hire people who have been The Boss before ,..
they know that every day MUST be profitable , .. and that thought never strays far from their FOCUS!
workers that have unknowingly “lapped-up” Marxist claptrap are PROBLEMS & TOXIC to anyone’s biz
we may seek to live on the mountaintop, but are sent into the valley to live our lives, where the work of the Lord goes on.
No, you are trying to say that all those who failed to vote to pubbies last election have caused a lot of damage because the Dims got the majority. I was responding to that factless claim by asking you to list all the substantive legislation the Dims have gotten passed and signed into law.
Either they did a lot of damage by getting their bad legislation passed and signed or they haven’t. If they haven’t, then your lame scare tactics are 100% baseless.
So, let’s have that list, scaremonger.
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