Republicans LIE about the tax hike hurting small businesses

[ilia25]

John Boehner:
"In my view, raising taxes on the so-called top 2 percent, half of those taxpayers are small-business owners that pay their taxes through their personal income filing every year... you're not going to grow the economy if you raise the top 2 percent rates. It'll hurt small businesses, and it'll hurt our economy..."

But the truth is that a personal tax hike does NOT hurt the small business, because only the company profits are counted as the owner's income and are taxed accordingly -- not the whole revenue. So the tax hike only penalizes those appropriating more than 250,000 of their company revenue. It has no effect on the business solvency -- quite the opposite, it encourages the owner to spend more revenues on expanding their business.

So the question is not whether Boehner treats Americans as a bunch of illiterate fools -- he obviously does.

The question is whether he will get away with it -- again.


See also:
http://www.slate.com/articles/busin...are_not_affected_by_obama_tax_proposals_.html

 

[g5000]

We also know Republicans are lying because they claim their deduction cap will have the same effect as raising the tax margin. They claim it will raise taxes on the rich!

.

 

[whitehall]

You almost gotta laugh. Lefties find an opinion by a leftie on a left wing blog and they post it as news. Actually the article claimed "republicans exploit confusion about taxes" when the freaking Hussein appointed treasury secretary testified in his confirmation hearing that he was confused about the standard tax form and that's why he cheated on his taxes.

 

[Koios]

John Boehner:
"In my view, raising taxes on the so-called top 2 percent, half of those taxpayers are small-business owners that pay their taxes through their personal income filing every year... you're not going to grow the economy if you raise the top 2 percent rates. It'll hurt small businesses, and it'll hurt our economy..."

But the truth is that a personal tax hike does NOT hurt the small business, because only the company profits are counted as the owner's income and are taxed accordingly -- not the whole revenue. So the tax hike only penalizes those appropriating more than 250,000 of their company revenue. It has no effect on the business solvency -- quite the opposite, it encourages the owner to spend more revenues on expanding their business.

So the question is not whether Boehner treats Americans as a bunch of illiterate fools -- he obviously does.

The question is whether he will get away with it -- again.


See also:
Small Business tax myths: Most firms are not affected by Obama tax proposals. - Slate Magazine

Emphasis added.

 

[Avatar4321]

Tell that to my friend who is struggling with her business because of the tax hikes

 

[Koios]

Tell that to my friend who is struggling with her business because of the tax hikes

What tax hikes?

 

[WillowTree]

poor stupid democraps. there's no help for em.

 

[ilia25]

You almost gotta laugh. Lefties find an opinion by a leftie

Tax code is not an opinion, it is a fact.

 

[eflatminor]

So there's no chance the business owner who takes a $250k salary for him and his family won't need to take a bit more from his company to maintain his current standard of living following a tax rate hike? I suspect that's exactly what he'll do. Alternatively, he can lay off a worker, not expand or hire as may have been previously planned, or perhaps raise his prices, if the market will stand it. Whatever he does, the owner has his bills to pay and a return to expect for the investment that created the business. If he doesn't continue to collect his normal salary, he will end up with less, which means he'll spend less. Not so good for the other business he won't be buying from.

No matter how you spin this, there is NO WAY raising taxes helps small business.

 

[Koios]

So there's no chance the business owner who takes a $250k salary for him and his family won't need to take a bit more from his company to maintain his current standard of living following a tax rate hike? I suspect that's exactly what he'll do. Alternatively, he can lay off a worker, not expand or hire as may have been previously planned, or perhaps raise his prices, if the market will stand it. Whatever he does, the owner has his bills to pay and a return to expect for the investment that created the business. If he doesn't continue to collect his normal salary, he will end up with less, which means he'll spend less. Not so good for the other business he won't be buying from.

No matter how you spin this, there is NO WAY raising taxes helps small business.

They don't take more. The profit accrues to them as personal income. And if that profit matches, mirculously, to the $250K they set as their salary, what additional tax will they pay, when only income north of $250K is taxed at slightly more than a 4% higher rate?

 

[Stephanie]

just where did the king Obama come up with this 250,000 as rich?

and I can't believe they are trying to sell this tax won't be hitting small business

the propaganda from the LEFT is in high gear for their Dear Leader

 

[ilia25]

So there's no chance the business owner who takes a $250k salary for him and his family won't need to take a bit more from his company to maintain his current standard of living following a tax rate hike?

No chance at all, if only because a guy taking home $250K is not affected under Obama plan.

He would have to take a $500K salary to pay 10K more in taxes.

 

[tjvh]

Let me get this straight... People actually believe a small business owner who gets slammed with higher Taxes isn't going to buckle down and send an employee or two packing? Are you people fucking nuts? What do you think they will do... Tell themselves they have to make sacrifices and continue paying people to work that they can no longer afford to because it is in the best interest of the Socialist collective? I seriously doubt it. Fucking people are living in a utopian fantasy world.

 

[007]

poor stupid democraps. there's no help for em.

Ya... we now know pretty much by fact that democraps are all a bunch of lazy trash looking for a hand out from the government, from Santa hussein. Worthless bunch of socialist, income redistribution, stupid commie human garbage.

 

[Stephanie]

He would have to take $500K salary to pay 10K more in taxes.

and how about that one..

they would only owe, 10,000 MORE..

come on people we shouldn't bitch, OBAMA NEEDS MORE OF YOUR MONEY

now give it to him

 

[Toronado3800]

just where did the king Obama come up with this 250,000 as rich?

and I can't believe they are trying to sell this tax won't be hitting small business

the propaganda from the LEFT is in high gear for their Dear Leader

Trust me, $250,000 a year is enough money to live quite well, especially when the average for you all is what, $40,000?

 

[eflatminor]

So there's no chance the business owner who takes a $250k salary for him and his family won't need to take a bit more from his company to maintain his current standard of living following a tax rate hike? I suspect that's exactly what he'll do. Alternatively, he can lay off a worker, not expand or hire as may have been previously planned, or perhaps raise his prices, if the market will stand it. Whatever he does, the owner has his bills to pay and a return to expect for the investment that created the business. If he doesn't continue to collect his normal salary, he will end up with less, which means he'll spend less. Not so good for the other business he won't be buying from.

No matter how you spin this, there is NO WAY raising taxes helps small business.

They don't take more. The profit accrues to them as personal income.

That depends. Not all profit always goes into the shareholder's pockets. Some can be reinvested in the company or held for future expansion, etc.

And if that profit matches, mirculously, to the $250K they set as their salary, what additional tax will they pay, when only income north of $250K is taxed at slightly more than a 4% higher rate?

Obviously, if we're talking about rate increases for income north of $250k, no change would occur in your scenario. I don't see your point however.

Certainly, for those business owners that would get hit with a tax rate increase, you cannot claim it to be a good thing for the business, their employees, or potential customers of the business or its owner.

 

[Koios]

Let me get this straight... People actually believe a small business owner who gets slammed with higher Taxes isn't going to buckle down and send an employee or two packing? Are you people fucking nuts? What do you think they will do... Tell themselves they have to make sacrifices and continue paying people to work that they can no longer afford to because it is in the best interest of the Socialist collective? I seriously doubt it. Fucking people are living in a utopian fantasy world.

Yes. Assuming that the person is not such a dweeb that they have folks working there that they do not need in order to enjoy a profit of let's say, $400 grand, then why on earth if $150 grand of it is taxed at a 4% higher rate ($6,000) would they get rid of a needed employee?

Explain the dynamic on that.

Fucking astonishing.

 

[eflatminor]

Trust me, $250,000 a year is enough money to live quite well...

Who gets to determine that? You?

And how do you know what investment was originally made to create the business? Is the return on capital invested not to be considered in what an owner pays himself?

Pass.

 

[eflatminor]

So there's no chance the business owner who takes a $250k salary for him and his family won't need to take a bit more from his company to maintain his current standard of living following a tax rate hike?

No chance at all, if only because a guy taking home $250K is not affected under Obama plan.

He would have to take a $500K salary to pay 10K more in taxes.

Thanks for making my point. Anyone making north of $250k WOULD get hit. Now tell us again how that helps the business, it's employees, or the companies that will not sell their product or service to the small business owner because he has less take home pay.