Are Republicans exaggerating the effects of tax increases to small businesses?

[citydweller]

I’m not sure if this link will work. If not I’ll try to cut and paste. http://money.cnn.com/2008/10/15/smallbusiness/small_biz_taxes_factcheck.smb/

According to this article, “Out of 34.7 million filers with business income on Schedules C, E or F, 479,000 filers fall into the top two brackets, according to an analysis of projected 2009 filings by the nonpartisan Tax Policy Center.

The other 34.3 million – or 98.6% – would be unaffected by Obama’s proposed rate hike.”

Another quote:
“For example: If a small-business owner makes $210,000 in taxable income, he edges into the 33% bracket, one of the two top tax rates that Obama would like to raise.

But he would pay the higher tax only on the amount that exceeds the cutoff – in 2007, the two top tax rates applied to single filers with income of $160,850 or more and joint filers with income of at least $195,850. As a single filer, this business owner would see his federal taxes increase $1,475 under Obama’s plan, which calls for raising the 33% tax rate to 36%.”

I have a Republican friend who is convinced that the higher tax rates will affect any business that has more than $250K in revenue. I tried to explain to her that it only affects those making more than $250K in net “taxable” profits, but she wouldn’t believe me.

I voted for Obama and so far I’m happy with the job he’s doing. However, I am trying to keep an open mind and would be interested if anyone can find any holes in the logic of this article.

[jpinpb]

Forgive the stupid question. Net or gross?

[jpinpb]

Forgive the stupid question. Net or gross?

[jpinpb]

Forgive the stupid question. Net or gross?

[jpinpb]

Forgive the stupid question. Net or gross?

[jpinpb]

Forgive the stupid question. Net or gross?

[citydweller]

Net profit, which would be the gross income (revenue) minus expenses.

[citydweller]

Net profit, which would be the gross income (revenue) minus expenses.

[citydweller]

Net profit, which would be the gross income (revenue) minus expenses.

[citydweller]

Net profit, which would be the gross income (revenue) minus expenses.

[citydweller]

Net profit, which would be the gross income (revenue) minus expenses.

[asragov]

The cries of class warfare are absurd. The way that Republicans are opposed to closing offshore loopholes for large corporations and fairer taxation at the high end is simply absurd.

Those fortunate enough to be in the highest tax bracket will not notice much of a change – a few points here or there is no big deal (really, it’s not warfare).

I resented Sen. Gregg’s comments along the lines of, “If you raise taxes on the entrepreneurs, they’ll have no reason to work anymore.”

Excuse me?! Raising my taxes a few % in a time of national crisis means I’ll chuck everything? How cynical and just plain wrong.

The conservative pundit David Brooks had it right, analyzing Gov. Jindal’s response to Obama’s speech:

“But to come up at this moment in history with a stale “government is the problem,” “we can’t trust the federal government” — it’s just a disaster for the Republican Party. The country is in a panic right now. They may not like the way the Democrats have passed the stimulus bill, but that idea … that government is going to have no role, the federal government has no role in this … it’s just a form of nihilism.”

Hopefully we are hearing the last squeal of these guys, before we get some level-headed people representing the Republican party again.

[asragov]

The cries of class warfare are absurd. The way that Republicans are opposed to closing offshore loopholes for large corporations and fairer taxation at the high end is simply absurd.

Those fortunate enough to be in the highest tax bracket will not notice much of a change – a few points here or there is no big deal (really, it’s not warfare).

I resented Sen. Gregg’s comments along the lines of, “If you raise taxes on the entrepreneurs, they’ll have no reason to work anymore.”

Excuse me?! Raising my taxes a few % in a time of national crisis means I’ll chuck everything? How cynical and just plain wrong.

The conservative pundit David Brooks had it right, analyzing Gov. Jindal’s response to Obama’s speech:

“But to come up at this moment in history with a stale “government is the problem,” “we can’t trust the federal government” — it’s just a disaster for the Republican Party. The country is in a panic right now. They may not like the way the Democrats have passed the stimulus bill, but that idea … that government is going to have no role, the federal government has no role in this … it’s just a form of nihilism.”

Hopefully we are hearing the last squeal of these guys, before we get some level-headed people representing the Republican party again.

[asragov]

The cries of class warfare are absurd. The way that Republicans are opposed to closing offshore loopholes for large corporations and fairer taxation at the high end is simply absurd.

Those fortunate enough to be in the highest tax bracket will not notice much of a change – a few points here or there is no big deal (really, it’s not warfare).

I resented Sen. Gregg’s comments along the lines of, “If you raise taxes on the entrepreneurs, they’ll have no reason to work anymore.”

Excuse me?! Raising my taxes a few % in a time of national crisis means I’ll chuck everything? How cynical and just plain wrong.

The conservative pundit David Brooks had it right, analyzing Gov. Jindal’s response to Obama’s speech:

“But to come up at this moment in history with a stale “government is the problem,” “we can’t trust the federal government” — it’s just a disaster for the Republican Party. The country is in a panic right now. They may not like the way the Democrats have passed the stimulus bill, but that idea … that government is going to have no role, the federal government has no role in this … it’s just a form of nihilism.”

Hopefully we are hearing the last squeal of these guys, before we get some level-headed people representing the Republican party again.

[asragov]

The cries of class warfare are absurd. The way that Republicans are opposed to closing offshore loopholes for large corporations and fairer taxation at the high end is simply absurd.

Those fortunate enough to be in the highest tax bracket will not notice much of a change – a few points here or there is no big deal (really, it’s not warfare).

I resented Sen. Gregg’s comments along the lines of, “If you raise taxes on the entrepreneurs, they’ll have no reason to work anymore.”

Excuse me?! Raising my taxes a few % in a time of national crisis means I’ll chuck everything? How cynical and just plain wrong.

The conservative pundit David Brooks had it right, analyzing Gov. Jindal’s response to Obama’s speech:

“But to come up at this moment in history with a stale “government is the problem,” “we can’t trust the federal government” — it’s just a disaster for the Republican Party. The country is in a panic right now. They may not like the way the Democrats have passed the stimulus bill, but that idea … that government is going to have no role, the federal government has no role in this … it’s just a form of nihilism.”

Hopefully we are hearing the last squeal of these guys, before we get some level-headed people representing the Republican party again.

[Author]

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