The myth of a small-business tax hike

[alp227]

Not surprisingly, Republicans aren’t pleased with Senate Democrats proposing a 5.6% surtax on millionaires and billionaires. But that’s no excuse to lie.

Rep. Doug Lamborn (R-Colo.), for example, insisted, “There are a lot of so-called millionaires who are small businesses. They’re not a movie star, they’re not a Hollywood actor, they’re the dry cleaner on the corner.”

This is standard GOP rhetoric — we couldn’t possibly ask the very wealthy to pay a little more in taxes, because those poor small businesses with seven- and eight-figure incomes would be unduly harmed.

Republicans say this all the time, but repetition does not improve its accuracy. Kevin Drum helped set the record straight a couple of weeks ago.

Step 1: The biggest part of Obama’s plan is to let the Bush tax cuts for the rich expire. The Brookings Tax Policy Center took a look at this last year and estimated that only 1.9% of small businesses are in the two top brackets that would be affected by repeal of the Bush tax cuts. That’s a little better than the dozen small farms affected by the estate tax, but not by much.

Step 2: About half of that 1.9% aren’t really small business owners at all. They’re high-income investors who get part of their income from investments in small businesses. So we’re down to about 1% of small businesses that would be affected.

full: http://www.washingtonmonthly.com/political-animal/2011_10/the_myth_of_a_smallbusiness_ta032649.php

[RaleighNCDUer]

1. So we’re down to about 1% of small businesses that would be affected.

And that means, of course, that the rest are part of the 99%.

Funny how that works.

[RaleighNCDUer]

2. If a guy owns a dry cleaner's business, he's a small businessman and

he is NOT making a million a year.

If a guy owns a chain of 26 dry cleaners across the state, he is NOT a small businessman.

[alp227]

3. remember the Rep. from La. who owns small business

and was whining on MSNBC about ? (Rep. John Fleming owns several Subway sandwich shops and manages UPS Stores in his district, I think.)

[JackintheGreen]

4. 5.6% on an INCOME of 1 million

is more than the median family income in the U.S. So I say fuck 'em. These bleeders are keeping more than 20x the median family income and they have the unmitigated gall to fucking complain? Seriously. Fuck. Them.

I know everybody here already knows this, but sometimes I just have to say it out loud. Or type it. Jesus these people are unbelievable.

(Wait...is my math right?)

[LiberalFighter]

5. That 5.6% surtax is only on the taxable income above $1 million.

Everything below that amount is taxed at regular rates.

[JackintheGreen]

6. I stand by my assertation

though I thank you for the clarification. Tax it all. These pricks can live comfortably on $650,000 post-tax income but not on $594,000?

"But Marge, what about our annual Christmas is Vale?!?!"

(Wait...did I just date myself?)

[LiberalFighter]

7. I agree... and why should they complain considering

they won't have to pay all those fees that everyone else will because they don't have the minimum money in their bank for fees to be waived.