If President Obama’s Tax Plan Targets 3.5 Percent Of Small Businesses?

[iker]

The GOP’s central argument against President Obama’s renewed push to let taxes rise on incomes over $250,000 is that it’ll target small businesses. The party’s rhetoric obscures the fact that the plan will hike taxes on just a minor fraction small business filers.

“What the President is proposing is therefore a massive tax increase on job creators and on small business,” Romney said Monday. “Small businesses are overwhelmingly being taxed not at a corporate rate, but at the individual tax rate. So successful small businesses will see their taxes go up dramatically and that will kill jobs.”

But to what extent would Obama’s tax plan actually affect small businesses?

In its latest estimate last month, Congress’s nonpartisan Joint Committee on Taxation found that in 2013, just 3.5 percent of small business tax filers would pay a higher rate — about 940,000 individuals, many of whom are lawyers and doctors in partnerships. But those few percent account for 53 percent of all small business income.

[darrell]

I'm a small business...and if you can't get your income to show less than $250k a year, it only means that you're filty rich and can afford a 3% tax increase- back to the Clinton levels

[bronsin]

So how many small businesses are just barely making it in the current economy? (I know at least a dozen in my city that have gone under because of the new regulations being inflicted on small and middle income businesses)
How many people stand to be laid off their jobs?
The new tax rates combined with new regulations and Obama care would effect far more than just 3.5% of small business and you can bet quite a few of these would not be lawyers or doctors in partnerships.

[leonie36]

What is being proposed is to return to the Clinton era tax rates for incomes over $250,000. Because of Grover Norquist that's not very likely to happen.

Why were more jobs created under Clinton (by any measure anyone could name) than after the Bush tax cuts? Do higher taxes lead to more job creation? Doubt it, but the correlation is there.

[jan46]

Small business people are masters at running personal expenses through their businesses -- it you can't get your profits under $250,000, you're not trying.

[teithi71]

A Obama does not have a tax plan he wants to extend Bush's tax plan. go figure