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Do you own a small business?/// Fact check

stop whining and spreading lies. This is good for you.
WASHINGTON – Claims that President Barack Obama's tax plans are an assault on small business skirt the likelihood that most job-producing small businesses wouldn't feel that pinch at all.
Obama is proposing to raise taxes on households earning over $250,000 by increasing the rate on the top two tax brackets and limiting deductions, starting in 2011.
Republicans and other critics, knowing they will get little mileage from defending the rich, instead are casting the plan as a tax hit on people who run industrious little companies driving job growth.
That's not likely, according to one in-depth analysis, which found that more than 95 percent of small business owners would be off the hook.
Obama does not propose higher business taxes.

Answer Question
 
Anonymous

Asked by Anonymous at 8:39 AM on Feb. 27, 2009 in Politics & Current Events

Answers (26)
  • But critics reason that owners of many small companies report business income on their personal tax returns instead of filing corporate taxes. That exposes their business's earnings to Obama's higher tax rates on the wealthy.
    To be sure, some business owners would get caught in that net.
    But for one thing, most small businesses don't create jobs. They tend to be lawyers, accountants and other professionals who earn some of their money from partnerships or otherwise organize themselves as a business entity.
    As well, many small businesses with employees don't earn enough to put their owners over the threshold for the higher tax rates.
    Indeed, most of them — like Joe the Plumber of presidential campaign fame — would probably get Obama's tax break for the middle class.
    Obama also proposes to eliminate capital gains taxes on small businesses and make a research tax credit permanent.
    Anonymous

    Answer by Anonymous at 8:40 AM on Feb. 27, 2009

  • Tell that to my friend who owns a small business. Shes already preparing and laying off people because the economy sucks. ANY tax increase will cause more job losses.
    Anonymous

    Answer by Anonymous at 8:40 AM on Feb. 27, 2009

  • THE CLAIMS:
    _"In fact, a majority of those penalized by the proposed tax increase in this budget are small businesses." — Republican Rep. Eric Cantor of Virginia.
    _"Small businesses and the entrepreneurs who lead them have been the primary drivers of job growth over the past decade. This plan would punish them with higher taxes, resulting in less government revenue, less economic growth, and fewer jobs — not more." — Bruce Josten of the U.S. Chamber of Commerce.
    THE FACTS:
    The U.S. has roughly 6 million businesses that employ people, and 20 million businesses without employees.
    The latter group includes solo operators, professionals in partnerships and those who organize themselves as a business for tax purposes but earn little if any income from the enterprise.
    Anonymous

    Answer by Anonymous at 8:41 AM on Feb. 27, 2009

  • MORE FACTS
    Small businesses are defined as having fewer than 500 workers each.
    Sizable companies within that group wouldn't be snagged by Obama's personal tax rates simply because they are too large to report income on the individual return of the owner.
    Many truly small operations simply don't make enough to qualify for the tax hit.
    Last year the Tax Policy Center run jointly by the Urban Institute and Brookings Institution examined the likely effects of Obama's plans to raise taxes on couples making over $250,000.
    The analysis estimated that 663,000 taxpayers who report business income or losses fall in the two tax brackets whose rates would go up under Obama. Many are small businesses on paper, without workers.
    Millions of other small-business owners would be clear.
    Anonymous

    Answer by Anonymous at 8:42 AM on Feb. 27, 2009

  • From my town (population 30,000) Chamber of Commerce meetings, I know of 4 small businesses that WILL be impacted and WILL be letting emplyees "GO".

    In this town of jobs leaving left and right~THAT IS ENOUGH FOR ME TO BE CONCERNED...

    Obama didn't save their jobs... But they aren't reliant on infrustructure contracts. They aren't involved as a Government Contractor. They are unionized. So my Guess is Obama and Democrats could care less.
    grlygrlz2

    Answer by grlygrlz2 at 8:52 AM on Feb. 27, 2009

  • aren't unionized. pardon moi :o)
    grlygrlz2

    Answer by grlygrlz2 at 8:52 AM on Feb. 27, 2009

  • ANONYMOUS PO,

    THE ARTICLE YOU HAVE THERE IS FROM YAHOO.
    People who read it commented on how it could have been written by Obama himself, it was so biased.
    Ask a real business owner how things are going or about how the future looks. That's where you'll get the best info.
    mustbeGRACE

    Answer by mustbeGRACE at 8:57 AM on Feb. 27, 2009

  • MUSTBEGRACE
    yes it's from yahoo taken from the associtaed press and written Calvin Woodward. God Garce you just love to assume and instigate. My sister is a small business owner and yes she has suffer because of the economy but not because of anything President Obama has done. Get over your bitterness


    FACT CHECK: GOP adrift on small business claim
    Buzz UpSendSharePrint
    By CALVIN WOODWARD, Associated Press Writer – Thu Feb 26, 6:14 pm ET
    Anonymous

    Answer by Anonymous at 9:27 AM on Feb. 27, 2009

  • My sister is a small business owner and yes she has suffer because of the economy but not because of anything

    Because your sister didn't make over $250000. You see ohh unwise unon, Business owners have houses, cars, kids in college, college educations to pay for. When the Government comes along and takes $5,000+++++ of their money, they have to make cuts. Many of them do this by letting the part time help go first. Then, they let go of landscapers, they maybe DON'T buy a new car or go on a vacation... It spirals from there. So taking from the segment of the population that actually CAN afford to stimulate the economy DOES NOT MAKE SENSE....
    So, yea, it may not be a huge percentage of the American Population. It's still job losses, it still spirals.
    grlygrlz2

    Answer by grlygrlz2 at 9:49 AM on Feb. 27, 2009

  • THE FACTS:


    The U.S. has roughly 6 million businesses that employ people, and 20 million businesses without employees. The latter group includes solo operators, professionals in partnerships and those who organize themselves as a business for tax purposes but earn little if any income from the enterprise.

    Anonymous

    Answer by Anonymous at 10:05 AM on Feb. 27, 2009

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