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View Diary: John Boehner is holding us hostage (133 comments)

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  •  Jay its good to have you back on D-Kos (0+ / 0-)

    This is an excerpt from an Op Ed from Citizens for Tax Justice:

    The Bush Tax Cuts and Small Business pdf

    2. Of the business owners who would pay higher taxes under Obama’s plan, those with the highest incomes cannot be called "small" business owners.

    Republicans in Congress echo NFIB’s talking points by arguing that the very wealthiest business taxpayers are the ones who truly matter in the debate over taxes.

    Former CBO director Douglas Holtz-Eakin, while testifying before the Senate Finance Committee, said that he thought the relevant figure was the amount of business income going to those few taxpayers rich enough to pay higher income taxes under the President’s plan. The Joint Committee on Taxation (JCT) projects that next year taxpayers will report a trillion dollars of active business income, and about half of that will go to taxpayers who are in the top two brackets (the brackets for which President Obama and Democratic leaders propose to allow rates to go back up to pre-Bush levels).

    But the business taxpayers who are rich enough to pay higher taxes under Obama’s plan (3 or 5 percent, depending on which figure you use) can’t all be called "small" business owners. They are merely people whose business profits are reported on their personal income tax forms. (This distinguishes these businesses from corporations that pay the corporate income tax.) But the businesses can be huge hedge funds, law firms, newspaper companies or even best-selling authors. They’re not necessarily struggling and they are not necessarily the sort of business people who create very many jobs.

    This becomes obvious when one considers data on total receipts of these "flow-through" businesses (so-called because the income is not taxed at the corporate level but at the individual level under the personal income tax), including S corporations, partnerships, and limited liability companies. Most of the total receipts from these businesses are generated by the small minority that have more than $10 million in receipts. This is not to say that large companies are not an important consideration for policymakers. But it’s important to note those business owners who actually would pay higher taxes under the President’s proposal are not likely to be of the "mom and pop shop" variety.

    Clearly the Republicans are making a fallacious argument about tax cuts for wealthy elites helping small business owners. .

    Jay I loved your book, Apollo's Fire: Igniting America's Clean Energy Economy thanks for giving it to me.

    Demand Filibuster Reform call your Senators at (202) 224-3121 -AND KEEP CALLING

    by Lefty Coaster on Tue Nov 23, 2010 at 01:09:48 PM PST

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