Geithner: Taxes on ‘Small Business’ Must Rise So Government Doesn’t ‘Shrink’

[Trajan]

*shrugs* they want us to pay for the 24% increase in discretionary spending they ladled out over 2 years and have made part of the baseline funding going forward, its really that simple.

See, you create the prgm. or bloat it, get folks on the hook, then scream that the nastys are ripping the heart out of it.

for anyone requiring a brief on what baseline spending is, its rather simple; execute a bill or refund a prgm., they build in legislatively a rise in its funding automatically year to year to year, every year, say 4%, so when asked to cut, the usual answer is well ok, but really? They don't cut the meat, they just cut down the baseline % and call it savings....The reps last march had their first hack at it and cut a lot of the baselines to zero, but now that the meat of the prgm.s itself is on the table? Forget it…….

 

[Trajan]

Oh and this is nothing really, they would like nothing more than to raise taxes on the middle class, they surfaced it back last year, the VAT etc. because they know the middle class is where the money's at, just thank your lucky stars the reps took the house.....

 

[Trajan]

here some more friday night cheer-

Three Inflationary Case Studies: Coke, Pasta And Rent

Following what appears to be just the beginning of a major market flush which could well bring the S&P to triple digits in order to serve as a catalyst for QE3, the word inflation has become taboo: after all, it is expected that Bernanke will have snapped his fingers, and the 15 minute count down to deflation will start. Alas, no. There are at least three products in which inflation has proven to be particularly stubborn, all due to a unique set of factors. The first one is Coke (the drink, although probably not isolated thereto), which just announced plans to hike prices 3 yo 4% due to still surging commodity costs. The second is pasta, whose prices are also set to soar, this time due to adverse climatic conditions. Per Bloomberg, "Unrelenting rainfall may have slashed U.S. planting of durum wheat to the lowest level in more than 50 years, fueling a surge in the price of pasta and noodles as mills scramble for supply of the grain." And the last, and possibly most perverse price spike, is the one which will actually hike the CPI, due to an increase in the shelter, or rents, component, as more and more Americans forgo owning a home in exchange for renting, in the process pushing up the one component that accounts for 41% of core CPI. In this way we see three completely unrelated channels in which inflation will continue to push through even as stocks plunge: an event which most MMT theorists always perceive as inherently deflationary.

more at-

http://www.zerohedge.com/article/three-inflationary-case-studies-coke-pasta-and-rent


now, lets play pretend, if pasta and durum wheat/grains are scarce, what else as in cascade effects on other commodities can we expect to see? Remember it goes forward from wheat and backwards as to what goes into planting, harvesting, delivering etc etc etc ...

 

[Quantum Windbag]

Small businesses don't get taxed. Their owners get taxed on the net profit like any other ordinary income that's 1099. Any moron radio show host that keeps talking about taxing small businesses either doesn't know what he's talking about or he's a moron. C Corporations get taxed corporately and unless you have 400 or more employees, or want to go public, then you don't need to be a C-Corp.

Are you a complete idiot? Here is a list of 200 of the best small businesses in America. Why don't you go through it and list all of the small businesses that do not pay taxes?

The 200 Best Small Companies - Forbes.com

 

[bripat9643]

Yes! Tax small business so government programs won't have to shrink!
Makes perfect sense to me.

These folks can't leave the White House soon enough for me.

How out of touch with the public can you be when you think you can scare people by telling them government might shrink if they don't do what you want?

 

[Annie]

Wouldn't it be easier just to enforce current tax law? $300 billion/year non-payment of taxes by...
we the people.

"We the People" pay our taxes in the main. It's our lords and masters, like Geithner that don't.

 

[oreo]

And this in a nutshell is why Obamanomics is an Epic Job Destroying Fail:

Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

n came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”

She then challenged Geithner on the administration’s tax plan.

“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”

Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”

“No, that's right. I agree with that,” said Geithner. “But just to put it in perspective, it's important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they've been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that's balanced, good for growth, fair to people as a whole.”

Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people....

Geithner: Taxes on

Geithner--the same guy who couldn't figure out his turbo tax--and owed an addiitional 40k in federal income tax--is our treasury secretary. He also has his hands in the Derivities market under the Clinton admininstration--which is part of the reason for the current economic collapse this country is in.

THE very worst thing this administration could possibly do is raise taxes on small business in this country--aka the largest employer of it.

And this income bracket--and the continual threatening of this bracket is a big reason why small business has tucked in--and is no longer expanding. Barack Obama has threatened to hit the 250k crowd with a 39% tax bracket. When you add in state and local taxes these job creators--would be paying .50 cents on every dollar they earn in taxes.

This administration is the most anti-business admininstration I have witnessed in my lifetime. The continual threats of higher taxes in this small business arena--has caused small business to tuck in like a turtle--until the threat is GONE.

 

[auditor0007]

Well folks, as I've been saying, we need to raise taxes. That is not to say that we do not also need to cut spending. I have no problem with this if there is at least an equal amount of spending cuts attached to any tax increase.

And by the way, while this may hurt a few businesses, most of them will just tack it on as a cost of doing business and raise their prices. Everyone is raising prices right now, so it shouldn't cost them in sales. It is however, going to help to contribute to greater inflationary pressures, and that would be my biggest concern.

 

[The T]

And this in a nutshell is why Obamanomics is an Epic Job Destroying Fail:

Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

n came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”

She then challenged Geithner on the administration’s tax plan.

“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”

Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”

“No, that's right. I agree with that,” said Geithner. “But just to put it in perspective, it's important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they've been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that's balanced, good for growth, fair to people as a whole.”

Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people....

Geithner: Taxes on

Welcome to the confirmation of hard tyranny that surpasses what born this Republic.

 

[chikenwing]

Well folks, as I've been saying, we need to raise taxes. That is not to say that we do not also need to cut spending. I have no problem with this if there is at least an equal amount of spending cuts attached to any tax increase.

And by the way, while this may hurt a few businesses, most of them will just tack it on as a cost of doing business and raise their prices. Everyone is raising prices right now, so it shouldn't cost them in sales. It is however, going to help to contribute to greater inflationary pressures, and that would be my biggest concern.

What??

 

[sparky]

Well, at least Geithner is honest about the real agenda: To Grow and Maintain Big Government.

Everything and everyone else is subordinate to that goal.

Seems Tim's agenda is more Big Biz oriented, but seeing as Big Biz and Big Gov are almost indistinguishable these days, your point can be taken in such light Boe

 

[iamwhatiseem]

Geithner: Taxes on ‘Small Business’ Must Rise So Government Doesn’t ‘Shrink’

Great. I work for a small business and like most of them in America, our EBITDA is down from last year. Guess what? No raises, bonuses or new hires. And this idiot thinks it's a good idea to raise taxes. It's only going to get worse. Obama is going to lose the election by the biggest margin in history.

I wouldn't be so sure.
Every single American who is getting something for nothing wants Obama to remain in office.
Every college student who is getting a free education because their parents divorced and chose to save nothing for education - wants Obama to stay in office.
A lot of folks who have been receiving unemployment for over a year - wants Obama to stay in office.
If your native language is Spanish - you probably want Obama to stay in office.
If you are black - overwhelmingly you want Obama to stay in office.

Basically, every non-productive person in the United States, every wealth-envy American will vote for Obama...period.
Every person who thinks that a man/woman who worked his or her fingers to the bone, who took great risk in building a business should be forced to have his income limited and have the government take the rest - wants Obama to stay in office.
And, unfortunately, that is a LOT of people.

 

[The T]

*shrugs* they want us to pay for the 24% increase in discretionary spending they ladled out over 2 years and have made part of the baseline funding going forward, its really that simple.

See, you create the prgm. or bloat it, get folks on the hook, then scream that the nastys are ripping the heart out of it.

for anyone requiring a brief on what baseline spending is, its rather simple; execute a bill or refund a prgm., they build in legislatively a rise in its funding automatically year to year to year, every year, say 4%, so when asked to cut, the usual answer is well ok, but really? They don't cut the meat, they just cut down the baseline % and call it savings....The reps last march had their first hack at it and cut a lot of the baselines to zero, but now that the meat of the prgm.s itself is on the table? Forget it…….

Exactly. Get the public drunk on the largess of voting themselves access to the Treasury, and then use it as a weapon. It's how we've gotten here. Just look at those on foodstamps? Those that pay no federal taxes, but get money back? Unprecidented, and unsustainable.

 

[snjmom]

Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring

That's what they are telling ya.

But they are lying.

Lack of demand is the only thing that keeps a business from hiring. You do realize all costs from salaries and benefits are not what business gets taxed on.

 

[saveliberty]

And this in a nutshell is why Obamanomics is an Epic Job Destroying Fail:

Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

n came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”

She then challenged Geithner on the administration’s tax plan.

“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”

Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”

“No, that's right. I agree with that,” said Geithner. “But just to put it in perspective, it's important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they've been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that's balanced, good for growth, fair to people as a whole.”

Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people....

Geithner: Taxes on

Good to restate this. Now as to why it will not work, just look at Michigan who used a similiar mindset nine years ago. We are top ten in every negative economic indicator.

 

[chikenwing]

Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring

That's what they are telling ya.

But they are lying.

Lack of demand is the only thing that keeps a business from hiring. You do realize all costs from salaries and benefits are not what business gets taxed on.

You don't own a business do you!

 

[saveliberty]

Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring

That's what they are telling ya.

But they are lying.

Lack of demand is the only thing that keeps a business from hiring. You do realize all costs from salaries and benefits are not what business gets taxed on.

Step away from the crack pipe mom. I'm just getting ready for quarterly taxes. Guess what I'm paying on? Wages and sales tax. Wages are a much larger portion by far.

 

[Gadawg73]

Small businesses don't get taxed. Their owners get taxed on the net profit like any other ordinary income that's 1099. Any moron radio show host that keeps talking about taxing small businesses either doesn't know what he's talking about or he's a moron. C Corporations get taxed corporately and unless you have 400 or more employees, or want to go public, then you don't need to be a C-Corp.

And when I get taxed more on my small businesses I let employees go.
But Geithner the tax cheat and the rest of the Obama administration would not know anything about that.
They have never worked one day in the private sector in a small business EVER.

 

[Gadawg73]

and this in a nutshell is why obamanomics is an epic job destroying fail:

treasury secretary timothy geithner told the house small business committee on wednesday that the obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

the administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

N came in an exchange with first-term rep. Renee ellmers (r.-n.c.). Ellmers, a nurse, decided to run for the u.s. House of representatives in 2010 after she became active in the grass-roots opposition to president barack obama’s proposed health-care reform plan in 2009.

“overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” ellmers told geithner. “they just simply cannot.”

she then challenged geithner on the administration’s tax plan.

“looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

ellmers then said: “sixty-four percent of jobs that are created in this country are for small business.”

geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”

“no, that's right. I agree with that,” said geithner. “but just to put it in perspective, it's important to recognize why are we doing this. You know, our deficits are 10 percent of gdp, higher than they've been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that's balanced, good for growth, fair to people as a whole.”

geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people....

geithner: Taxes on

good to restate this. Now as to why it will not work, just look at michigan who used a similiar mindset nine years ago. We are top ten in every negative economic indicator.

unions

 

[chikenwing]

I wold love to add 1-2 more people,the demand is sorta there,but the costs to do that,just doesn't make it worth it just to much risk and market instability.New york is the suckyest place to do business ever.