A new study by Internal Revenue Service, shows that allowing Bush-era tax rates for high earners to expire, the centerpiece of President Obama’s tax plan and a big part of his campaign rhetoric, would mean that 1 million companies would be hit with new taxes. According to the IRS, which goes to great lengths to define a small business, high-income earners make up 24 percent of all small businesses that have employees.
Hmmm taxing the rich won’t hurt the small guy huh obama?
Wealthy earners with small businesses account for 923,000 businesses with employees. There are many more in business for themselves.
“No matter how you slice it and dice it, it’s hard to avoid that this is a tax increase on a significant share of small business owners,” said Raymond Keating, chief economist of the Small Business & Entrepreneurship Council told CNNMoney.
Democrats also argue that a tax on “millionaires and billionaires” — or, what in the real world means anyone making more than $200,000 and married couples pulling in more than $250,000 — could actually spur growth. How, is still a mystery.