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Obama Tax Commission Report:
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Tuesday, August 31, 2010
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Friday, August 27, 2010
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Thursday, August 26, 2010
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Wednesday, August 25, 2010
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Tuesday, August 24, 2010
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- Government Workers' Pensions are Underfunded by $3 Trillion
Monday, August 23, 2010
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Friday, August 20, 2010
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Thursday, August 19, 2010
Treasury Secretary Geithner on Small Business Tax Hikes
From Ryan Ellis on Thursday, March 12, 2009 3:34 PMTreasury Secretary Tim Geithner testified today before the Senate Budget Committee. Most of the proceedings focused on the Obama tax hike. Of particular interest was the hemming and hawing Geithner did on the impact that the Obama tax hike will have on small businesses.
Here's what Geithner had to say in his prepared testimony:
The President’s Budget includes tax provisions to help small businesses. It recognizes that many small businesses are operated as sole proprietorships or through partnerships and other flowthrough entities, and leaves the individual income tax rates at which these small businesses are taxed unchanged in 2009 and 2010. By extending the current rate structure for families earning less than $250,000 after 2010, it ensures that 97% of small businesses will receive additional tax relief at that time or see their rates remain unchanged.
A few thoughts here:
- It's good that Geither recognizes that small businesses are organized as sole proprietorships, partnerships, and S-corporations. He should further recognize that more than $2 out of every $3 in profit earned by these businesses will be hit by his administration's tax rate hikes
- It's good that Geithner acknowledges that small business owners pay taxes on their business' profits personally. So, raising tax rates on most of this profit can't be a good thing, can it?
- He claims that 97% of small businesses won't be affected by these rate hikes. First of all, that might be a little high (I think the number is closer to 85%), but I won't quibble over the fact that most small businesses won't face higher tax rates. That completely and totally misses the point, though. Two out of three dollars of small business profits will pay these higher tax rates. This tax increase is a tax increase on the small business sector
- As long as we're talking numbers, I have another one for Secretary Geithner. According to the Census Bureau, 35% of American workers--42 million people--are employed in firms with fewer than 100 employees. These firms are no doubt the same ones that will face a tax hike under Obama
To re-emphasize, the top small business tax rate will go from 37.9% to 42.5%. If the Obama Democrat primary campaign tax plan goes through (uncapping the Social Security taxable wage base), this rate will further climb to 54.9%. This would be the highest tax rate on the small business sector since the Carter Administration.
Why does is make sense to focus a tax increase directly on most small business income and the employers of a large percentage of Americans? The answer is that it doesn't.
Permalink | Email | Print | Tags: TAXES, THEPLEDGE, POLITICS, CONGRESS, OBAMA, BUDGET














Comments
see how this affects us
>> john Friday, March 13, 2009 11:34 AM Report Comment
Why? Because the Almighty needs our money of further his goal of socalism. Oh and bye the bye it also buys votes. Doc
>> Ed Watson Friday, March 13, 2009 2:07 PM Report Comment
In 2006, 78% of the households in America earned between $19K and $250K. J. Peter Grace in 1984 headed a commission that re-discovered what Willie Sutton taught us in the 1930's... That; the money will be pursued wherever it is. Willie robbed banks; the government taxes the middle class. No other scenario will raise the large amounts of cash desired. The difference between Willie and the government is; Willie, not a bureaucracy didn’t waste as much and, he was honest about what he did.
>> M.A.K. Friday, March 13, 2009 2:48 PM Report Comment
The administration has been forced to change its tune. The Obama administration is sinking fast. nachumlist.com
>> Nachum Sunday, March 15, 2009 1:54 PM Report Comment