Most of the money is coming from hikes from people who make 2million+ a year. Most small business does not fall under that. It is a significant hike for those folks. They pay most of the taxes, so its the easiest way to get additional revenue.

Well, i think they devil is in the details here. There is no way he's gonna have exactly what regulation is gonna occur yet. I doubt it is going to be oppressive regulation or any price fixing. Plus, sometimes the private sector seeks to make you conform as well, look at unions. So its not only a govt thing.  Next,  Obama is for transperacy. He believes in people being able to know what the govt is doing. Also, how revenue would you say the average small busisness has? personally, I don't think many will be paying 3k or 12k more a quarter.

If he rolls back the tax cuts then he will be increase the top two brackets from 33% - 36% and 35%-39.6%. 12k is about what a 4.6% increase on 250Kwould amount to. A small business cash intake can be approxamated in many ways. Here's a quick and dirty method. Lets say assume an electrician that employees 5 full time employees.

$60/ hour (avg rate for skilled labor in my area) * 40 hours a week = 124,800

124,800 * 5 employess = 624,000

Employee Income = 45k or 180k for all 4

*note: admittedly this number can be higher or lower significantly based on how the time is managed and if there are other profit generaters such as charging for estimates and/or consultations. Also large contract deals will affect the avg. price per hour. Like I said this is quick and dirty.

Now lets look at the tax implications.

Income: 624,000

Less Payroll: 180000

Less Payroll Taxes (SS & Medicare): 13,770

Income after Payroll: 430,230

Less Additional Operating Expense (assume a 66% operating cost):  231,840

Less Tax (assume just sales tax): 15,070

Proprietor Income: 183,320

Less Current Tax: 64,162

Less Obama's Tax Increase: 8,433

Less Payroll Taxes: 28,048

Less State Tax: 13,496 (NC - filled as head of household)

Proprietor Net: 69,181

Let's not forget that the other 4 will be taxed too:

Employee Gross: 45,000

Less Federal Income: 11,250 [ * 4 = 45,000]

Less Payroll: 3,442.5 [ * 4 = 13,770]

Less NC State (HoH): 3,022.5 [ * 4 = 12,090]

Plus Obama's Claim to give Middle Class families 1,000

Employee Net Income: 28,285

Bottom Line: 182,321 <-- The 5 people who worked the butts off live of this.

Bottom Line: 209,839 <-- Government does nothing and takes more money than the workers. Please explain to me how that's a friend of the working class?

Edit: To anyone that looks at this and still thinks that these tax increases only effect the rich, please realize that all 5 fictional employees here would be bringing home Middle Class wages and Obama's increase will make it even tougher. almost 10k lost would definetaly equal a lost job or cut wages across the board. That is no friend of the middle class

Edit: Overhauled structure to show common deduction practices and a more realistic operating cost. 

Your not calcualting it right. Sole proprietorships or llc are not taxed based on income, but on profit. He's not going to be raised to a higher tax bracket. I did some more research on this and your tax calculations are wrong.

from
http://www.nolo.com/article.cfm/objectId/FE1875A0-239D-48E5-B7D2565E0CB62159/catID/3FED35C1-7BBA-4468-901354F101CBEBE2/111/182/147/ART/

"You'll be taxed on all profits of the business -- that's total income minus expenses -- regardless of how much money you actually withdraw from the business. In other words, even if you leave money in the company's bank account at the end of the year (for instance, to cover future expenses or expand the business), you must pay taxes on that money.

You can deduct your business expenses just like any other business. You are allowed to expense (deduct) much of the money you spend in pursuit of profit, including operating expenses, product and advertising costs, travel expenses, and some of the cost of business-related meals and entertainment. You can also write off certain start-up costs and the cost of business equipment and other assets you purchase for your business."

Also, (http://www.nolo.com/article.cfm/objectID/B407A867-3EE5-410F-8718C78B2EF698D6/111/277/235/ART/)

"How tax savvy a businessperson you are has a great effect on how much money is in your pocket at the end of the year. You probably know that the tax code allows you to deduct costs of doing business from your gross income. What you are left with is your net business profit. This is the amount that gets taxed."

Lets say that this is a llc and all 5 members have equal ownership.
First, you have to deduct business expenses. So this would be the operating expenses (buying parts, gas for travel, etc) I don't know how much this would be.

Then, you divide the profits or losses into 5 and thats how much each person gets and is taxed for.

If it is a sole proprietorship, then one guy owns it and the 5 other are employees. So, the employees salaries would be counted as an expense.

So, your small business owner , in fact, does not enter a new bracket and thus does not pay more from the cuts. But, he does get additional help from the "helping work pay" benifit and the increased access to incubators that Obama's plan would have.

Lastly, I admit i messed up on earlier posts on the small business tax code. I did a bit of research so i could get it right.

you are correct. A business owner can do itemized deductions and bring down the taxable income. the example I gave is what a non-itemized return would look like, just to show how the different taxes would impact the business. Also, the same rules would apply anyway.

However, for your claim that the owner(s) income will not push them into a higher tax bracket to work the operating cost will have to be represent over 80% of the revenue. Which would not usually be the case.

Also, if the payroll expenses are different. There are still taxed albiet at about half the income tax rate for SS and Medicare. I calculated this worng so I'll change that.

Well, the other 20% would be considered profit. It may push him over, but even so, thats money he can pocket or reinvest (if reinvested in business operations he can then deduct next year). Thats just like making say, 200k from a job.
This is what can be deducted:

"Internal Revenue Code § 162. 'Trade or business expenses.'

"(a) In general. There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including

"(1) a reasonable allowance for salaries or other compensation for personal services actually rendered;

"(2) traveling expenses (including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances) while away from home in the pursuit of a trade or business; and

"(3) rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity."

"
this from the tax code. This basically covers the whole cost of business.