"Obama's tax on the 'rich' will actually tax small business."

[Stinky The Clown]

First, with no taxes, how do these asshats expect to pay down this crushing debt they keep incurring?

But no matter. That's another whole story. The latest talking point is that Obama's plan to return the top 2% to pre Bush tax levels is actually a 'tax on small business'.

Let's understand something. That tax is on PERSONAL INCOME over 250K. Not a business' gross. My sense is that there are a lot of dumbfucks who are conflating a business' gross with a person's net. This is how the guy driving a 14 year old Tercel with a rusty fender to a minimum wage job at some cigar chomping 'small business' owner's job aligns his thinking with the repubicans. If he thinks his boss will be so taxed that Mr. Tercel is out of a job, he'll vote for the repubican.

[Hugabear]

1. Rethugs lie, what else is new

They've been pushing the lie that most small business owners report their business earnings as personal income, therefore small businesses will be hurt the most. Rethugs love to throw around lots of economic jargon and lingo knowing that the average American doesn't understand what they're talking about, and will just accept whatever they say at face value.

[Suji to Seoul]

2. Point by point:

First: Republicans don't care. That's their great grandchildren's problem.

Second: Republicans know the "tax" lie works. It has since Nixon. Intelligent responses don't work. You need to keep it simple.

"Hey, Joe Lunchpail. . .you make more the $250,000 a year?"

(drool, snort, spit, empty, vacant brainless expression)
"Yup."

"Tax cut. Understand?"

(drool, snort, spit, empty, vacant brainless expression)
"Yup."

Keep it simple for the stupid.

[liberal N proud]

3. The Obama - Biden plan for Small Business:

Support Small Business

Provide Tax Relief for Small Businesses and Start Up Companies: Barack Obama and Joe Biden will eliminate all capital gains taxes on start-up and small businesses to encourage innovation and job creation. Obama and Biden will also support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation.

Create a National Network of Public-Private Business Incubators: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. Obama and Biden will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

http://www.barackobama.com/issues/economy/#small-business

[TwilightZone]

4. For some small businesses, business income = personal income.

Sole proprietorships, for example. So, in some cases, the statement is true.

That, of course, doesn't mean that we shouldn't revoke the Bush tax cuts.

[kurt_cagle]

6. Alternatives even with sole proprietors

Most of the taxes on sole proprietors come from "self-employment" taxes, which basically covers FICA, SSN and other government programs. It would take a fairly trivial change in the tax code in order to reduce the SE taxes (which would be welcome), and for the most part people who are declared as SPs are not in fact raking in the dough (I was one for a few years before I changed to a schedule s corp, which confers considerably more tax benefits even for a personal corporation).

[meow2u3]

9. Unincorporated small business aren't protected from personal tax liability, either

The profits (or losses) from these mom-and-pop, independent businesses are counted as personal income under the social security number of the proprietor(s). If the business goes belly-up, depending on income, the business owners are personally liable for all federal, state, and local taxes. Corporations, on the other hand, are taxed separately from their representatives, and the representatives are protected from personal tax liability.

[Stinky The Clown]

8. But they still have to show a **net profit** of 250K

I are a small bidnis.

250 K ain't easy.

Ergo ..... talking point is bullsheet.

[firedupdem]

5. I honestly feel that no matter who's in office we are going to feel

some additional tax burden. How will we pay for this war and the 27 banks we've "bailed" out or "loaned" money too. The deficit is huge! I just prepare myself to get screwed some kind of way on the tax issue. Talk Me Down!

[theothersnippywshrub]

7. It will tax only rich small businesses.

A small business organized as a pass through entity for tax purposes will not be subject to a tax increase unless its net income causes the owner to have $250K in income. If the small business is the owner's sole source of income the business would have to have a profit of $250K.