| ManusJustus said: Reducing capital gains helps businesses. When Obama is president he will roll back the tax cuts on rich people's income, not tax their businesses. |
You do realize that many small businesses are taxed at the individual rate of their owners, right?
From the US Treasury: Link
"The business income from sole proprietorships, farm proprietorships, partnerships, S corporations, etc., is all taxed at the owners' individual income tax rates. This year 34 million business owners are expected to receive this type of income and pay tax on this income through the individual income tax. These businesses are typically small and often entrepreneurial in nature, and a source of innovation and risk-taking in the economy. Moreover, these business owners are frequently subject to the highest individual income tax rates."
On the reduction of the top two tax brackets:
"Reductions in the top 2 tax brackets
• About 70 percent (about 1 million) of the 1.4 million tax returns that benefit from lowering the top
two tax brackets from 39.6 percent to 35 percent, and from 36 percent to 33 percent, are flow-through
business owners.
o Nearly 540,000 of these taxpayers receive more than 30 percent of their income from flow-though
businesses.
• About 81 percent (about $27.3 billion) of the total $33.8 billion in tax relief this year from lowering
the top two tax rates will be received by flow-through business owners.
o Individuals with more than 30 percent of their income from flow-through businesses receive 44
percent (or about $15.0 billion) of the total tax relief from lowering the top two tax rates."
Because so many taxpayers in the top income brackets are small business owners paying their personal tax rate on their business, Obama's plan to raise their taxes will actually take money directly out of small businesses.
From the Cato institute:
“About one-third of the workers affected by raising the Social Security earnings cap would be small business owners."
"However, removing the cap would create the largest tax increase in U.S. history: $ 1.3 trillion over the first 10 years. Even increasing the cap to cover the first $150,000 of wages would amount to $384 billion in new taxes. It would give the United States one of the highest marginal tax rates in the industrialized world, with the potential for severely disrupting economic growth."
(Michael Tanner, "Keep The Cap," The Cato Institute, Link, 6/8/05)
The increased tax burden on a small business WILL cost jobs. Small businesses employ a huge number of american workers, less money kept in the business = less money to pay employees- It's just a fact. It's not the rich people that end up paying for this tax plan, it's those they employ that are hurt.
