| Letting the tax cuts on the 3% of wage earners who make over $250,000 per year will not significantly deter hiring.
If you think that raising taxes on the wealthy curtails job growth, then how do you explain the record setting job growth during the Clinton administration, when taxes on the wealthy were higher? |
| But the Tax Policy Center found in 2008, when checking out similar campaign claims by “Joe the Plumber,” that only 2 percent of all Americans reporting small-business income, regardless of tax bracket, would see tax increases if Obama fulfilled his pledge to let the Bush tax cuts lapse for the top earners. The economist Dean Baker calculated that the yearly tax increase at the lower end of that bracket, for those with earnings between $200,000 and $500,000, would amount to $700 — which “isn’t enough to hire anyone.”
Those in the higher reaches aren’t investing in creating new jobs even now, when the full Bush tax cuts remain in effect, so why would extending them change that equation?
Source: "Who Will Stand Up to the Superrich?" By FRANK RICH - NY Times - November 13, 2010 Internal Revenue Service statistics indicate that only 3 percent of small businesses would be subject to the higher tax, and many studies of previous tax increases suggest that it would have minimal impact on hiring. According to the Joint Committee on Taxation, 97 percent of all businesses owners do not earn enough to be subject to the higher rates, which would be levied on income of over $200,000 for individuals and $250,000 for families. Even among the 750,000 businesses that would be subjected to the higher rates in 2011, many are sole proprietors — a classification so amorphous it can include everyone from corporate executives who earn income on rental property to entertainers, hedge fund managers and investment bankers. Because 80 percent of America’s 32 million businesses are sole proprietorships, 90 percent of the tax cut would be derived from businesses without employees. [T]he way the I.R.S. classifies small businesses is vastly different from the public perception of the neighborhood dry cleaner or the small tool-and-die shop. A report released by the Joint Tax Committee in July found that many of the tax returns categorized as small businesses were actually filed by wealthy taxpayers who earned business income through limited partnerships or S corporations to allow their firms to avoid paying corporate taxes. The study found that in 2005, 19,000 of those small businesses had revenue of more than $50 million. Source: "Tax Increase Would Hit Few Small Businesses" By DAVID KOCIENIEWSKI - NY Times - September 17, 2010 |
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| Comments | Contributor | Date Submitted |
| Because Conservatives don't have to be logical, they just have to spout the party line. | Linda Denton |
9/7/2010 |
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