It is funny that tax cuts are at the source of some of the debate between Republicans and Democrats. I can remember a few years ago when Democrats fought vehemently against any form of tax cuts, lumping every proposed tax cut as a tax cut for the rich. I will yet again put up figures about who actually pays income tax.
Source1
Source2
So it seems we can all agree that we need tax cuts but only people who deserve it. That is everyone except the rich 2-5% of business owners. Well, that is not really the truth either.
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.
The tax rate on the lion's share of small business income could reach 54.9% under a President Obama. The individual top rate will climb from 35% to 39.6% and the Social Security/Medicare tax rate could climb from 2.9% to 15.3%. Put those together and you get 54.9%. (for emphasis)
Obama's tax increases will only affect you if you have a 401(k), have any savings, buy things from small businesses or are looking for a job," explains Grover Norquist, president of the Americans for Tax Reform. "If you fall into one of these categories, his policies will take money out your pocket. Otherwise, you're fine."
Again, I say, Democrats do not lower taxes.
Source
Labels: Obama
