Republicans LIE about the tax hike hurting small businesses

[bornright]

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

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate will you reimburse me if it does?

 

[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:
http://www.slate.com/articles/busin...are_not_affected_by_obama_tax_proposals_.html

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate will you reimburse me if it does?

Sure. Right after you pay back them guvmint subsidies and all.

 

[ilia25]

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate..

I never said that. I said that your personal tax increases do not hurt your business revenues, its profitability, or how much of it you can spend on business expenses or expansion.

Only the money that you are spending on yourself (and not on your farm) are subject to personal taxes. If you spend on yourself more than 250K, then you will see slightly higher taxes. E.g. if you pocket half a million, you will pay 10K more.

 

[bornright]

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

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate will you reimburse me if it does?

Sure. Right after you pay back them guvmint subsidies and all.

The only time I have recieved any govt subsidies was when EPA creates a foolish rule or law and there is a govt subsidies that pays to cover the foolish EPA decision.

 

[Koios]

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate will you reimburse me if it does?

Sure. Right after you pay back them guvmint subsidies and all.

The only time I have recieved any govt subsidies was when EPA creates a foolish rule or law and there is a govt subsidies that pays to cover the foolish EPA decision.

Cool. When can we have it back?

 

[bornright]

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate..

I never said that. I said that your personal tax increases do not hurt your business revenues, its profitability, or how much you can spend on business expenses or expansion.

Only the money that you are spending on yourself (and not on your farm) are subject to personal taxes. If you spend on yourself more than 250K, then you will see slightly higher taxes. E.g. if you pocket half a million, you will pay 10K more.

We shall see.

 

[bornright]

Sure. Right after you pay back them guvmint subsidies and all.

The only time I have recieved any govt subsidies was when EPA creates a foolish rule or law and there is a govt subsidies that pays to cover the foolish EPA decision.

Cool. When can we have it back?

When you get rid of EPA

 

[Uncensored2008]

Cool. When can we have it back?

Right after you disband the EPA. Coincidentally, that's when we can have electronic and other manufacturing return....

 

[Koios]

The only time I have recieved any govt subsidies was when EPA creates a foolish rule or law and there is a govt subsidies that pays to cover the foolish EPA decision.

Cool. When can we have it back?

When you get rid of EPA

Hell yeah; if we have farm subsidies designed to mitigate EPA policies. Seems pretty dumb. Mind sharing the particulars, or is that just justification, which all the coporate welfare queens are so fond of?

 

[bornright]

Cool. When can we have it back?

When you get rid of EPA

Hell yeah; if we have farm subsidies designed to mitigate EPA policies. Seems pretty dumb. Mind sharing the particulars, or is that just justification, which all the coporate welfare queens are so fond of?

I can give you several but I will just stick to one major one. I raise cattle and hay but I also have a fairly large poultry farm. I have approximately 160,000 chickens at one time with around 3% mortality. The government has decided it is unsave for the environment to bury these chickens so we are required to buy freezers to freeze the dead birds in which a company picks the dead birds up at the end of the flock. My freezers cost 15,000 and God only knows how much electricity I spend on the running of the freezers. There is a government subsidy that pays for 75% of the cost of the freezer and none on the electrity.
Natures way is for the birds to decompose in the ground making the soil richer. The government feels other wise.

 

[BillyV]

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

I have a small business which is a farm. My farm does make in excess of the 250,000. Since you are so sure this Obama tax will not increase my tax rate will you reimburse me if it does?

Never fear, the “tax hike only penalizes those appropriating more than 250,000 of their company revenue.” So as long as you’re not a greedy capitalist, you’ll be fine. Just take that extra income that you’re not “appropriating” and expand your business, that’s all. Buy some land (oh, right, that isn’t deductible from your taxable income). OK, buy yourself a new tractor (oh, wait, that is only partially deductible through depreciation). Well, then, hire a bunch of employees to use up the excess; payroll is deductible (oh wait; you don’t have any extra land for them to farm or a tractor, so you can’t use them, either). Oh well, so you pay the additional tax; what’s the problem? You’re rich, you know (well, under the current regime; Mitt would have considered you barely middle class)! You shouldn't charge so much, you're exploiting the poor!

 

[Koios]

When you get rid of EPA

Hell yeah; if we have farm subsidies designed to mitigate EPA policies. Seems pretty dumb. Mind sharing the particulars, or is that just justification, which all the coporate welfare queens are so fond of?

I can give you several but I will just stick to one major one. I raise cattle and hay but I also have a fairly large poultry farm. I have approximately 160,000 chickens at one time with around 3% mortality. The government has decided it is unsave for the environment to bury these chickens so we are required to buy freezers to freeze the dead birds in which a company picks the dead birds up at the end of the flock. My freezers cost 15,000 and God only knows how much electricity I spend on the running of the freezers. There is a government subsidy that pays for 75% of the cost of the freezer and none on the electrity.
Natures way is for the birds to decompose in the ground making the soil richer. The government feels other wise.

So you have waste that needs proper disposal so that your ponduck little farm ADM will be steamrolling first chance it gets, so you don't fuck up the ground water, and tax-payers gotta pay for your problem? Imagine that.

 

[bornright]

Hell yeah; if we have farm subsidies designed to mitigate EPA policies. Seems pretty dumb. Mind sharing the particulars, or is that just justification, which all the coporate welfare queens are so fond of?

I can give you several but I will just stick to one major one. I raise cattle and hay but I also have a fairly large poultry farm. I have approximately 160,000 chickens at one time with around 3% mortality. The government has decided it is unsave for the environment to bury these chickens so we are required to buy freezers to freeze the dead birds in which a company picks the dead birds up at the end of the flock. My freezers cost 15,000 and God only knows how much electricity I spend on the running of the freezers. There is a government subsidy that pays for 75% of the cost of the freezer and none on the electrity.
Natures way is for the birds to decompose in the ground making the soil richer. The government feels other wise.

So you have waste that needs proper disposal so that your ponduck little farm ADM will be steamrolling first chance it gets, so you don't fuck up the ground water, and tax-payers gotta pay for your problem? Imagine that.

I had a feeling it would be difficult for you to understand the benefit that goes into the soil from burying the poultry. Where are you going to put grandpa when it comes that time?

 

[ilia25]

OK, buy yourself a new tractor (oh, wait, that is only partially deductible through depreciation).

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

 

[mikegriffith1]

You can confirm at several small business association websites that raising the top two tax brackets would impact nearly 50% of small business income (about 48%, per IRS data) and 14% of all small businesses (not 3% as the Dems keep falsely claiming). For example, check out this short study published by the National Federation of Independent Businesses:

http://www.nfib.com/Portals/0/PDF/A.../raising-top-2-marginal-rates-nfib-201207.pdf

 

[Koios]

I can give you several but I will just stick to one major one. I raise cattle and hay but I also have a fairly large poultry farm. I have approximately 160,000 chickens at one time with around 3% mortality. The government has decided it is unsave for the environment to bury these chickens so we are required to buy freezers to freeze the dead birds in which a company picks the dead birds up at the end of the flock. My freezers cost 15,000 and God only knows how much electricity I spend on the running of the freezers. There is a government subsidy that pays for 75% of the cost of the freezer and none on the electrity.
Natures way is for the birds to decompose in the ground making the soil richer. The government feels other wise.

So you have waste that needs proper disposal so that your ponduck little farm ADM will be steamrolling first chance it gets, so you don't fuck up the ground water, and tax-payers gotta pay for your problem? Imagine that.

I had a feeling it would be difficult for you to understand the benefit that goes into the soil from burying the poultry. Where are you going to put grandpa when it comes that time?

I understand complying with environmental regs. All businesses have to. Just not all of us get a check. But more power to you. Great not-work if you can get it.

Meanwhile, grandpa is in a nice jar, and as yet, to be disposed of, illegally. Parents, too. Thanks for asking.

 

[Koios]

OK, buy yourself a new tractor (oh, wait, that is only partially deductible through depreciation).

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

No. It's an asset, as is cash or A/R. But it's depreciable, in accelerated fashion if folks so choose. Thus the expense cannot be expensed at the time purchase, unless, and this common, equipment purchases up to a point, can be written off if bought before year end. Programs like that are common, to spur durable good sales to businesses.

But it's merely, in effect, depreciating it all at once as opposed to over a 5 year period.

 

[BillyV]

OK, buy yourself a new tractor (oh, wait, that is only partially deductible through depreciation).

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

Please note those rules specify "bought....before Jan. 1, 2012"; not going to be of much use in 2013. It was nice while it lasted, I'll admit, but then, I never met a tax deduction I didn't like.

 

[ilia25]

You can confirm at several small business association websites that raising the top two tax brackets would impact nearly 50% of small business income (about 48%, per IRS data) and 14% of all small businesses (not 3% as the Dems keep falsely claiming). For example, check out this short study published by the National Federation of Independent Businesses:

http://www.nfib.com/Portals/0/PDF/A.../raising-top-2-marginal-rates-nfib-201207.pdf

It is not the businesses that are impacted. Only their owners, and only those using their business income to live in luxury.

 

[BillyV]

OK, buy yourself a new tractor (oh, wait, that is only partially deductible through depreciation).

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

No. It's an asset, as is cash or A/R. But it's depreciable, in accelerated fashion if folks so choose. Thus the expense cannot be expensed at the time purchase, unless, and this common, equipment purchases up to a point, can be written off if bought before year end. Programs like that are common, to spur durable good sales to businesses.

But it's merely, in effect, depreciating it all at once as opposed to over a 5 year period.

Yes, but it helps to point out that the fact that someone who has over $250,000 in taxable income may have only been able to get a small portion of that in cash for themselves; reinvesting profits into a business often leads to little or no deductions and therefore a larger tax bill may prevent the owner from making those investments.