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Wed Nov 14, 2012, 09:12 PM

Boehner's claim that raising taxes on incomes over $250,000 would "destroy small businesses."

The most recent tactic adopted by the most misleading Republicans in reaction to President Obama’s call for those with incomes over $250,000 to pay more of their fair share of taxes is to claim that would “destroy small businesses.” But that is grossly misleading and disingenuous (if not totally dishonest).

The fact is that the personal income tax is on individuals, and therefore on the individual owner of small businesses, not the business itself. Moreover, most very small business owners who have annual personal incomes of between $250,000 and $500,000 have been allowed to pay nothing in income taxes because they been able to deduct all their “business expenses” (most of which are for personal use as well, like vehicles, home office equipment, travel expenses, etc.). Consequently they are able to pay zero income taxes.

No politician is talking about that, but the fact is that very small business owners with personal incomes like that can certainly afford to pay a fair share of taxes.

Now, President Obama’s plea to require those with incomes over $250,000 to pay their fair share of taxes has actually been very clever, because he has cited "The Buffet Rule," which is based on Billionaire Warren Buffet's statement that he should not be able to pay a lower percentage of his income than his secretary.

Mr. Obama's plea has also not only been clever, but also ironic, even though the commercial media has ignored it. For Mr. Obama has used words very similar to the Republicans' biggest hero, Ronald Reagan, in insisting that the wealthy pay their fair share of taxes -- as you can see in a video in the article on Reagan's Legacy -- because Reagan said very clearly that "a bus driver should not have to pay a higher percentage of his income in taxes than a millionaire."

Republicans ignore that, of course, and instead focus on all the things that Reagan said and did that benefitted the wealthiest few at the expense of everyone else, and unfortunately that was Reagan’s main agenda. He had to pretend otherwise of course, as most Republicans do. And since then the cunning deception of the Reaganites has been incredibly successful in their war on labor unions and everything else that restrained corporate power and profit, and that has had a devastating effect on labor unions, worker’s rights and benefits, the environment, and the economy.


(Quoted and excerpted from The American Economy: Why It's Broken, and How We Can Fix It.)
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Reply Boehner's claim that raising taxes on incomes over $250,000 would "destroy small businesses." (Original post)
SarahM32 Nov 2012 OP
Angry Dragon Nov 2012 #1
SmittynMo Nov 2012 #14
TomCADem Nov 2012 #2
subterranean Nov 2012 #5
LiberalFighter Nov 2012 #6
glowing Nov 2012 #3
liberal N proud Nov 2012 #4
kestrel91316 Nov 2012 #7
Proud Liberal Dem Nov 2012 #8
Hippo_Tron Nov 2012 #9
Angry Dragon Nov 2012 #16
BlueDemKev Nov 2012 #10
Angry Dragon Nov 2012 #17
Jeff In Milwaukee Nov 2012 #11
plcdude Nov 2012 #19
Jeff In Milwaukee Nov 2012 #21
ladjf Nov 2012 #12
SarahM32 Nov 2012 #13
Myrina Nov 2012 #15
meow2u3 Nov 2012 #18
yellowcanine Nov 2012 #20

Response to SarahM32 (Original post)

Wed Nov 14, 2012, 09:16 PM

1. Okay boner show me the facts

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Response to Angry Dragon (Reply #1)

Thu Nov 15, 2012, 03:07 PM

14. Boner can't show no facts cause

Boner aint got no facts. He's just out to protect himself and all his rich croonies. I thought he'd buy a vowel this time around, as clearly he still does not get what's going on. Apparantly it still doesn't make a difference, even after spending 500 bucks on a vowel.

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 09:18 PM

2. Only 3 percent of small businesses would be affected. Bain Capital is a small business...

...under Boehner's definition. Extend tax cuts to those making under $250K and 97 percent of small businesses enjoy the break.

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Response to TomCADem (Reply #2)

Wed Nov 14, 2012, 09:25 PM

5. Actually 100% of small business owners would get the tax cut extension,

but only on their first $250,000. Large business owners, too.

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Response to subterranean (Reply #5)

Wed Nov 14, 2012, 09:29 PM

6. That is a point that needs to be stressed clearly

Too many don't understand how taxes are levied.

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 09:20 PM

3. But teachers and firemen make too much money

and need to give up more benefits and pension $. These two ideas do not compute. Most people in America would be only too happy to earn that much a year. The avg family is lucky to see $50,000 a year to live off of.

I think most people would be happy to pay a little bit more in taxes if they were lucky enough to earn that much as a total per year... Especially, if they had been on the other side of the curve earning way less. Really, minimum wage is like $14,000 a year or some such nonsense.

Most people would think making $100,000 or more should pay more in taxes incrementally until the billionaires were really paying their fair share. And after this election where we saw the millionaires literally throw millions away on a worthless candidate, they clearly have more than enough to pay into the treasury to reduce our taxes!!!!

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 09:25 PM

4. They still don't get it.

The GOP continues to work for the rich and attacking the middle class.

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 10:47 PM

7. <<< THIS small business owner is laughing hysterically.

My business profit (gross receipts minus operating expenses) is more than an order of magnitude less than $250k. And if I DID take home $250k+ I would be so gloriously well off that increased taxes wouldn't phase me.

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 10:57 PM

8. Where are these $250K jobs?

I'd love to apply for one! BTW is Rep. Sean Duffy (R-Wisc) still in office and complaining about his paltry $174K annual income?

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 11:05 PM

9. I've been saying this since John Kerry proposed the same thing in 2004

So basically, AFTER taking advantage of dozens upon dozens of deductions available to small businesses, you will have to pay A WHOLE 4.5% more ONLY on your REMAINING income OVER $250,000. Cry me a fucking river...

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Response to Hippo_Tron (Reply #9)

Thu Nov 15, 2012, 06:07 PM

16. I do not believe that it is the small business owners that are whining

it is the republicans fighting for the rich

Make over $5 million/year pay 50%
Make over $4 million/year pay 45%
Make over $3 million/year pay 40%
and that is after deductions

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 11:05 PM

10. Same old story...

...

If a small business (even if it's a one-person operation) can't afford to pay 39.6% income tax rate, starting with its 250,001st dollar in a calendar year, then they can INCORPORATE their business and pay the lower corporate tax rate.

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Response to BlueDemKev (Reply #10)

Thu Nov 15, 2012, 06:10 PM

17. but that amount is AFTER all business and personal deductions

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Response to SarahM32 (Original post)

Wed Nov 14, 2012, 11:32 PM

11. OK. Here's the thing....

The taxes being raised are on personal income taxes. This is the net profit from the small business, so any profits and losses have been calculated BEFORE the business income goes onto the personal return. So raising personal income taxes has absolutely ZERO effect of the profitability of the business.

Utterly Bullshit Argument.

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Response to Jeff In Milwaukee (Reply #11)

Fri Nov 16, 2012, 10:52 AM

19. exactly

This is what needs to be stressed - it is on small business owners or anyone else who makes over $250,000 annually from their business or their job. It is not a tax on the small business profits.

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Response to plcdude (Reply #19)

Fri Nov 16, 2012, 12:42 PM

21. And here's the other thing...

The higher the individual tax rate, the more inclined I'm going to be, as a small business, to NOT take the cash out of the business and (instead) invest it in new equipment or marketing for new customers or hiring a part-time employee. Higher individual tax rates = greater tax savings for people who reinvest the profits in their business.

Lower tax rates are a disincentive to small business investment.

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Response to SarahM32 (Original post)

Thu Nov 15, 2012, 12:24 AM

12. That's disingenuous crap Mr. Speaker and you most definitely know it. nt

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Response to SarahM32 (Original post)

Thu Nov 15, 2012, 02:48 PM

13. Great comments. Thanks.

Looks like you all agree that the claims of Boehner and the right-wing Repubublicans is deliberate, misleading propaganda.

We know the problem, but what we need a a solution. We need real change and reform, which is not likely to come given the status quo.

That's the reason I quoted that article, because it's part of a comprehensive message discussing the important issues of the day regarding both government and religion, because these days they have become related by Theocrats.

My hope is that you will investigate and explore the message, because it suggests real solutions.
---

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Response to SarahM32 (Original post)

Thu Nov 15, 2012, 03:35 PM

15. The best way to 'destroy small businesses' is to eliminate demand ...

... and suppressing wages, downsizing and taxing the shit out of the lower & middle class will do that in a jiffy.

Pretty simple, Mr. TanMan.

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Response to SarahM32 (Original post)

Thu Nov 15, 2012, 07:27 PM

18. "Small business" is a 1% dog whistle

It really means multinational corporations, multimillionaires, and billionaires, especially those who take advantage of loopholes and tax breaks in such a way that they not only don't pay income taxes, they get freakin' refunds.

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Response to SarahM32 (Original post)

Fri Nov 16, 2012, 10:53 AM

20. The American people disagree with you Johnny.

Deal with it.

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