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View Diary: Mitt Romney: Lying to victory (383 comments)

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  •  Romney said half work for "last 3%" of small bus. (1+ / 0-)
    Recommended by:
    rosabw

    “those businesses that are in the last 3% of businesses employ half, half, of all the people who work in small business. Those are the businesses that employ one-quarter of all the workers in America.”

    Is this true?

    History is that certainty produced at the point where the imperfections of memory meet the inadequacies of documentation. -- Patrick LaGrange, aka Julian Barnes

    by Nicolas Fouquet on Thu Oct 04, 2012 at 06:27:17 AM PDT

    •  he also said he knows about small business and (1+ / 0-)
      Recommended by:
      wishingwell

      how to HIRE people.  Give me a break.  

      If the plutocrats begin the program, we will end it. -- Eugene Debs.

      by livjack on Thu Oct 04, 2012 at 06:30:59 AM PDT

      [ Parent ]

    •  Good Call Nick... (0+ / 0-)

      Wal-mart employs 1%  of all American workers.  But are they small business?  It just doesn't sound right.

      Follow your hunch.  I think he's fudging the truth.

      If you starve the middle class, whose gonna pay for your crap?

      by rosabw on Thu Oct 04, 2012 at 06:51:03 AM PDT

      [ Parent ]

    •  If Romney said it (1+ / 0-)
      Recommended by:
      DSPS owl

      odds are, no.

    •  That was a real twist of the truth (2+ / 0-)
      Recommended by:
      BlueDragon, Nicolas Fouquet

      in at least one way: remember, they were talking about tax policy for personal taxes. You know, what you report and pay on a form 1040. Now, a very small business like a sole proprietorship may report net business income on a personal return. That is reasonably common. But if you are in the top 3% of "small businesses", then you are almost certainly not doing that. At that point you have set up a corporation or some other structure and then your business return is not your personal tax return, and changes to personal tax policy don't affect your business.

      Plus in any case, owners are taxed on the net income they tax home from their business. Giving them a tax reduction for that is practically the same as handing every business owner a government check. And if you did that, how many would immediately use that money to hire someone? It is just free money to the owner. Why not take a nice vacation instead? It is a very inefficient way, at best, to spur hiring.

      •  I certainly agree with your supposition (1+ / 0-)
        Recommended by:
        Slightly Wobbly

        I am a small business owner with 30+ employees.  An increase in profits/cash will get "spent" paying people I owe money to, first, and then a lot of other things.  But, it NEVER plays into my hiring decisions.  Those are made on the prospect that I can grow my sales, even at little or no margin sometimes.  Growth in revenue is the primary driver because that means more flexibility to grow profits.

        My conservative colleagues will tell pollsters or their gov't representatives that Obamacare scares them and that it will depress our hiring, when asked.  They'll say that increasing tax rates will decrease our incentives to invest.  

        They'll say it, but it NEVER actually happens.

        Romney claimed these were results of polling business leaders about taxes.  That's because most business leaders ARE REPUBLICANS!  They'll say what R's want to hear.

        Drives me nuts.

        History is that certainty produced at the point where the imperfections of memory meet the inadequacies of documentation. -- Patrick LaGrange, aka Julian Barnes

        by Nicolas Fouquet on Thu Oct 04, 2012 at 04:29:50 PM PDT

        [ Parent ]

    •  Depends... (1+ / 0-)
      Recommended by:
      Nicolas Fouquet

      If you don't include businesses with "no employees", that is, you are self employed or a sole proprietorship, then the statistic Romney stated is plausible. If you include businesses with no employees, which constitutes 75% of all businesses, then it is not even close. You can find data on sba.gov or from the census. A lot of the reports on small business statistics do not include single person businesses, even though that would seem to be the epitome of a small business. A small business is defined by the SBA as one with fewer than 500 employees.

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