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Obama Tax Hike Would Slam 620,000 Small Businesses

by Keith Koffler on July 10, 2012, 11:36 am

At least 620,000 small businesses would see their taxes go up if President Obama’s plan to to raise taxes on those earning more than $250,000 goes into effect, according to statistics based on the White House’s own estimates.

President Obama is hoping to minimize the PR fallout from his proposal to allow the Bush tax cuts to expire for high earners, noting in remarks Monday that some 97 percent of small businesses - many of which file under the individual tax code - would not be affected.

Obama Monday suggested that the number of small businesses affected was trivial and consistent with his intent not to raise taxes on small business:

Most people agree that we should not raise taxes on middle-class families or small businesses — not when so many folks are just trying to get by . . . The proposal I make today would extend these tax cuts for 97 percent of all small business owners in America.  In other words, 97 percent of small businesses fall under the $250,000 threshold.  (Applause.)  So this isn’t about taxing job creators, this is about helping job creators.  I want to give them relief.  I want to give those 97 percent a sense of permanence.

What this obscures is that more than 99 percent of all businesses in America qualify as small businesses, so even a minor percentage is a huge number.

The White House later released information stating that 2.7 percent of small businesses would take a hit on their taxes. According to the Small Business Administration, there are 23 million small businesses in the United States, so 2.7 percent would amount to 621,000 of them.

This is if you accept Obama’s math. Republicans are suggesting that some 940,000 small businesses would be affected by Obama’s tax proposals.

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{ 27 comments… read them below or add one }

RickW July 10, 2012 at 11:52 am

So if I make less than $250k I won’t lose the Bush cut but if I work for a business that makes over $250k and might go under because their tax goes up, I might lose my job. Using Obamacal logic, the loss of my job means I have to pay even LESS in taxes! Now THATS a deal! Where do I sign up?????

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The Original July 10, 2012 at 1:34 pm

Here is what happens . . . they reduce their workforce as far as they possibly can go . . . and just wait it out.

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srdem65 July 10, 2012 at 11:57 am

Raising taxes across the board is hardly a good thing if you’re planning on being reelected.
Accusing MrRomney of being a successful businessman who made a ton of money isn’t working out to be a negative, but a positive.
Trumpeting the voter ID laws as some insidious, sneaky racist tactic doesn’t fly with the voters.
Whining about your incompetence and pulling a pity shawl over your head only makes the public aware of the bad choice they made in 2008.

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The Original July 10, 2012 at 1:43 pm

And Gov. Romney has BOTH an MBA and law degree from Harvard which he did simultaneously. That still boggles my mind. Just one of them would be hard enough.

Meanwhile, we have no idea who BO who gave up his law degree within just a few years of being licensed did at Harvard. BO’s life is a mystery. He has done very little in his life except to win several elections through smoke and mirrors. He does not know what in the world he is doing. He is such a fraud.

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DeniseVB July 10, 2012 at 11:59 am

My head is spinning with all the twists and distortions from Obama and his people. Swiss Banks aren’t “evil” , he’s outsourced more jobs than Romney, MR’s fatcat friends are no different than Obama’s fatcat friends (i.e. million dollar donor Bill Maher), the tea party is a violent org but the OWS windows smashers are peaceful protesters……ad nauseum.

A small business in this economy has enough hurdles and all Obama seems to be doing is creating a more hostile environment for them.

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Car in July 10, 2012 at 12:18 pm

Also, that number is sorta skewed because there are many -MANY- small businesses that do not employ anyone. People running things out of their homes. Ebay sellers, etc. They are businesses, but they aren’t really pulling in that much money (perhaps just supplementing their income.) So, that 2.7 number looks small, but it’s a LOT bigger than it appears.

It would be nice if someone could eliminate all the “small businesses” that either don’t employ anyone, or employ one or two people. I know I saw an article about this a year or two back.

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A.J. July 10, 2012 at 1:00 pm

Absolutely correct!! My wife and I used to operate our own Tax Preparation Biz. (A “Small Business”) and we prepared many returns for people whose “business” was little more than a hobby. The 620,000 successful Small ARE the Job Creators.

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A.J. July 10, 2012 at 1:02 pm

Rats – That’s 620,000 successful Small Businesses ARE the Job creators. I need a proofreader!!!!

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Car in July 10, 2012 at 3:33 pm

Yep. I know a year or two ago there was a figure out there regarding how many businesses – small and successful but non-hobby- were going to be affected.

It was much more substantial than 2.7%.

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Just2old July 10, 2012 at 12:28 pm

For some odd reason they seem to want to flat-line hiring in this country. I don’t get it. How is waging war against capitalism and success going to help him get reelected?

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A.J. July 10, 2012 at 1:07 pm

Simple Math. The Progressives have spent decades trying to get the country to a point where over half the population gets “STUFF” without contributing anything. If you ask someone who pays no taxes if those who DO pay should pay more it would take an exceptional individual to say no!!

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The Original July 10, 2012 at 1:36 pm

Think what will happen when the 500K military people who were pink slipped a few months ago hit in September when they are no longer employed.

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Just2old July 10, 2012 at 2:14 pm

You’re right TO. Just when things are starting to improve for them….from the Army Times:
The unemployment rate for Iraq- and Afghanistan-era veterans fell to 9.5 percent, down from 12.7 percent the previous month and from 13.3 percent in June 2011, according to the employment situation report released Friday by the Labor Department’s Bureau of Labor Statistics

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Lizzy July 10, 2012 at 12:53 pm

There are probably children running lemonade stands with a better understanding of business than this fool. Except when the powers that be shut them down! He never had a job or made a payroll and has no grasp of
commerce he just parrots what his people tell him to say. If it weren’t for the
small business and folks willing to take a risk we would not be the great country we are or I should say were until Jan 2009.

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Death Ray July 10, 2012 at 1:04 pm

If it weren’t for Democrats, these tax cuts wouldn’t even be in place. And as far as raising taxes, that isn’t quite accurate.The tax cuts were designed to expire, which means that even as they were written in to law, the authors realized that they might not be wise over the long haul.

Give up the ghost, folks. You wanted two wars without consequences and a prescription drug benefit at no cost to you AND to maintain a fantasy about trickle down economics, and now you must pay the piper at last.

Well, not you, of course, but the people who actually have some money. But I’m sure they appreciate all your crocodile tears ;)

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Car in July 10, 2012 at 3:30 pm

You wanted two wars without consequences and a prescription drug benefit at no cost to you AND to maintain a fantasy about trickle down economics, and now you must pay the piper at last.

Does the name Ted Kennedy ring any bells with you? And you do realize that it was a compromise, and that the Democrats wanted to expand the program even further, right?

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Death Ray July 10, 2012 at 6:05 pm

Did they really? Well, they should have fought harder, because the Republicans sure were in a SPENDIN’ MOOD, BABY!!!!

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Car in July 10, 2012 at 3:31 pm

And the whole “they were tax cuts planned to expire” may work with fools, but not with us.

Obama wants to raise taxes. EOL.

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Death Ray July 10, 2012 at 6:02 pm

Um… they WERE designed to expire. That is why they keep expiring.

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The Original July 10, 2012 at 2:13 pm

SERIOUSLY OT but worth the listen. New song by Hank Williams, Jr. It should be the anthem at the RNC convention.

http://www.youtube.com/watch?feature=player_embedded&v=Rt_vjPqAVzI

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Susan July 11, 2012 at 9:43 am

Bocephus hits another home run. Perfect battle hymn of the Tea Party.

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veritaseequitas July 10, 2012 at 7:37 pm

People, people, people – don’t think of them as taxes, think of them as penalties. Now open up and eat your peas people.

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Susan July 10, 2012 at 7:51 pm

The ruling class is intentionally destroying the economy of this country, just as they are intentionally leaving our Southern borders open for invasion. They plan to steal our country right out from under our noses by diluting our vote with invading illegals, and causing chaos and instability by enlisting the aid of their special interest groups likes LaRaza, NAACP, ACORN rebranded, union thugs, and the little OWS idiots who fancy themselves anarchists and socialist revolutionaries. They think they can garner enough votes among these groups to finish off America. I think they underestimate the American spirit. We don’t go down without a fight.

Eric “The Red” Holder was in Houston today, giving a speech before the annual convention of the NAACP. He vowed to fight the Texas photo id law that he claims discriminates against the poor and downtrodden. Ironically, he made those vows before an audience of NAACP members who were required to show photo id to attend his “speech”. If it weren’t for double standards, these leftists would have no standards at all…

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Death Ray July 11, 2012 at 2:04 pm

If you ain’t got what it takes to be a part of that thar ruling class then you can just giiiiit out.

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Kasey Harrington July 11, 2012 at 10:26 am

This is already Corporate America. I’m tired of seeing small businesses go under. More people will lose jobs. I’m usually not up for cutting taxes, however, governor of New Mexico, Gary Johnson, was able to cut taxes 14 times, create more than 14,000 jobs, and leave the state with a budget surplus.
http://www.youtube.com/watch?v=227YyBf7-KQ

It’s not possible to raise money and eliminate the deficit through taxes, we need to reallocate our resources and how we are distributing the money in this country.

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craig fugate July 11, 2012 at 1:35 pm

great article. Progressives have always HATED Small Business with a passion. one of the major goals of B.O. care was to cripple Small Business with huge new expenses and rules and regs that require a team of CPA’s to figure out. which is one reason there is virtually NO small business in Socialist (Progressive) Europe anymore. it simply withered away, like Left wants it to in the USA.

so why do Progressives hate Small Business so much? Simple – they DON’T VOTE democrat!

lastly, dems didn’t pass B.O. Care for America;

they passed it strictly for the democrat PARTY to gain more control and power over American citizens and the private sector.

BO and the dems wants to ‘help’ Small Business?

what a TOTAL lying Progressive JOKE.

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