President Obama, democrats in Congress, the liberal media, most Obama supporters and even some Republicans/Independents think these tax hikes should happen. Actually, they think it is a fabulous idea. Just do it already, what’s the big deal? If you are not understanding their logic it’s because they have none and this is merely class warfare at its best. Thanks a lot Barry.
President Barack Obama has proposed raising taxes on the rich to put America’s fiscal house in order, but critics say federal spending is so massive that the wealthy don’t have enough money to cover the nation’s unprecedented debt.
In an interview with MSNBC’s Andrea Mitchell, Rep. Tom Price (R-GA) said President Barack Obama’s plan to raise taxes on the wealthy would only generate enough revenue to fund the federal government for eight days.
“The president’s plan to increase taxes on the upper two percentcovers the spending by this federal government not for eight years, not for eight months, not for eight weeks but for eight days. Eight days only,” said Mr. Price. “It’s not a real solution. So, again, I’m puzzled by an administration that seems to be more interested in raising tax rates than in gaining economic vitality.”
The problem is that the rich don’t have enough money to put so much as a dent in America’s $16 trillion national debt. “If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion,” writes John Stossel. “That’s only a third of this year’s deficit. Our national debt would continue to explode. READ MORE
What policymakers fail to realize is that most small business owners, who also employ most of the country’s workforce, declare their business profits on the owner’s personal income tax return and are taxed at the personal income tax rate. Given that the net income number for many will be over $250,000, the proposed tax hikes could have a dramatic effect on small businesses and the growth and hiring decisions they will make.
Another point policymakers overlook is that business owners will ultimately pass this cost on to the middle class by raising prices on goods and services, possibly triggering layoffs and stalling hiring. READ MORE
Based on data from the President’s own Treasury Department, tax hikes on upper-income earners would directly fall on 91 percent of income earned by job-creating businesses that pay their taxes through the individual income tax, which are known as flow-through businesses.
Successful small businesses face a double whammy from the Obama tax hikes. In addition to allowing the Bush tax cuts to expire for wealthy Americans, President Obama’s signature health care law will raise their taxes yet further. As Heritage’s Curtis Dubay explains:
The higher tax rate on wages and salaries will cause workers to cut back on their hours, which will slow economic growth. It will also deter job creation at small businesses. The income of certain small businesses (sole proprietorships) is wage and salary income to the owner. As both employee and employer, the owner therefore pays the entire newly increased 3.8 percent [hospital insurance] tax rate. With more of the owner’s—and therefore the business’s—income taken by higher taxes, the owner will have fewer resources to invest back into the business to create jobs. READ MORE