Screwing Small Business People
October 21, 2008 / 10:29 pm • By Dr. Melissa ClouthierDo you have an employee or two? Are you an employee at a small business? If you answer yes to either question, you’ll want to read this from the Wall Street Journal:
Mr. Obama’s tax increase would hit the bottom line of small businesses in three direct ways. First, because 85% of small business owners are taxed at the personal income tax rate, any moderately successful business with an income above as little as $165,000 a year could face a higher tax liability. That’s the income level at which the 33% income tax bracket now phases in for individuals, and Mr. Obama would raise that tax rate for those businesses to 36%.
Second, the Obama plan phases out tax deductions (the so-called PEP and Pease provisions), thus raising tax rates imposed on this group by another 1.5 percentage points. Finally, Mr. Obama would require many small business owners to pay as much as a four-percentage-point payroll tax surcharge on net income above $250,000. All of this would bring the federal marginal small business tax rate up to nearly 45%, while big business would continue to pay the 35% corporate tax rate.
Add that to increasing capital gains taxes and small business owners are doubly punished. They will be taxed more and they will be forced to keep their money stuck.
Guess what will happen? Small business owners will freeze hiring and probably have to fire employees and replace them with cheaper labor or none at all. People employed by small businesses should run from Barack Obama’s plans to help them. Unless a person with a job wants to live on government handouts–you know enjoying the wealth being spread around–vote John McCain.
Obama is right. It’s about J-O-B-S.
Cross-posted at Right Wing News
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