Skip to comments.Obama tax hikes could hit up to 1.3 million small businesses
Posted on 10/29/2008 10:43:26 PM PDT by FocusNexus
Barack Obama's plan to raise the top two federal income tax rates would increase taxes on between 663,000 to 1.3 million small businesses that file taxes under personal income categories, according to rival analyses.
The Tax Foundation contends the Obama's tax increases could amount to a $30 billion annual tax increase on 1.3 million small businesses in higher 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 rates eyed by Obama.
Many of those small businesses are startups, sole proprietorships and home-based companies. Other small firms file under traditional business tax categories.
(Excerpt) Read more at bizjournals.com ...
Obama to the Middle Class and Small Businesses - Suckers!
these business owners might want to have a chat with any or all of their employees and explain what an Obama tax increase might do to their jobs.
IMO ....It will HIT 300 Million Americans from the 5 year old buying ice cream to the 80 year old buying playing cards as business’s don’t pay taxes they maintain a profit margin by passing on their costs to the consumers !
Silly socialist sheeple swallowing this Swami’s Kool-Aid promises are idiots !
Obamas taxes will raise the cost of ALL consumer goods and products .
won’t matter they are hypnotized by the messiah.
What! What do you mean elections have been suspended for 2010 because he isn't finished restructuring and reeducating? Why did Education Secretary just order all of the parochial and home schools closed? What is going on?
This is ALL George Bush's fault!!! Somebody should have told me this would happen back in 2008. I would have voted for the lipstick girl, what's her name again?
What fraction of small business employees work for an employer who makes more than $250K/year in revenue (note that Obama used the term ‘revenue’, not ‘profit’, when talking to Joe the Plumber)? While the vast majority of small businesses make less than $250K/year, the vast majority of small businesses have no employees other than the proprietor. I’m pretty sure that most small business employees work at businesses with over $250K/year of revenues.
This article from IBD goes along the same lines: Obama’s tax policy will kill the companies that create jobs.
This is the most pertinent excerpt:
Small businesses create nearly 80% of the new jobs in the American economy, and Barack Obama is proposing that the bulk of their job-creating profits should be sent to Washington.
Since the mid-1990s, the small business sector has created 78.9% of the net new jobs in the United States, reports the Office of Advocacy at the Small Business Administration. Sen. Obama is claiming his proposed tax hike on incomes over $250,000 will hardly stifle job creation in this key job-producing sector because “98% of small businesses make less than $250,000.”
The 98% figure may be correct, but it conceals more than it reveals, just as Obama’s description of Weatherman bomber Bill Ayers as “a guy who lives in my neighborhood who’s a professor of English” was accurate but deceiving.
Obama gets to his reassuring 98% figure by lumping firms with no employees, the majority of small businesses, with small businesses that have 50 or 100 employees. Census data show that 79% of all American companies, counting both large and small firms, have no employees.
Similarly, the SBA’s Office of Advocacy reports that 52% of small businesses in the U.S. economy are home-based that is, not exactly the heavy-hitters when it comes to job creation.
As the New York Times reported regarding the makeup of the nation’s 27 million small businesses: “According to figures compiled by the Small Business Administration, there are fewer than six million small businesses that actually have employees. The rest are so-called non-employer firms that report income from hobbies or freelance work done by their registered owners, earning as little as $1,000 a year.”
By treating a lemonade stand the same as a home builder with 100 employees, Obama can get away with saying that 98% of small businesses in America won’t be hit by his proposed increases in income taxes.
He’s telling the 59 million employees in the small-business sector there’s almost no chance, specifically a 2% chance, that their jobs or incomes will be negatively affected by his proposed tax hikes and policies to “spread the wealth around.” In fact, Obama’s proposed tax hike on incomes over $250,000 is precisely aimed at the small businesses that are generating the highest revenues and hiring the most workers.
“Two-thirds of small business profits are earned in households making more than $250,000 per year,” reports Americans for Tax Reform. “In 2006, $473 billion of the $706 billion of small business profits was earned in households Obama has said he would raise taxes on.”
Increasing my taxes will hamper my ability to upgrade equipment, medical plans, retirement contributions for employees, educational help, expand employment. It just goes on and on.
Democrats are idiots.