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  • Obama's Small-Business Tax Could Average $25,000

    President Obama has made raising taxes on “the rich” a central plank of his re-election campaign. Yet even many Democrats are questioning the wisdom of hiking taxing on job creators while the economy is still struggling and unemployment is still lingering at over 8 percent.

    They are right to be concerned. According to calculations by The Heritage Foundation’s Center for Data Analysis (CDA), the average American with $250,000 or more in income can expect an average $24,888 tax increase next year under Obama’s proposed policies.

    The $24,888 figure is often enough for a salary, and despite what some proponents of the tax hike have argued, many of these successful small businesses do have employees. According to the Treasury Department, 1.2 million small businesses both had employees and earned more than $200,000 in 2007. So the President is putting about 1.2 million jobs—perhaps even more—at risk with this tax hike.

    In 2014, there will be about 1.9 million taxpayers with purely non-farm business gains of more than $250,000, according to the same CDA analysis. In other words, almost 2 million tax filers will have at least $250,000 of just business income—not counting any wages, capital gains, or rental income. This business income could be used to hire new employees or at least stay in business and keep them employed.

    If President Obama’s tax hikes are put in place, each of these taxpayers will have to hand over about $25,000 more of that business income to Uncle Sam instead. Small businesses already have to compete with corporations, which are favored by regulatory policy and the tax code and even propped up with stimulus money. Small businesses, which are the real engine of job growth in America, simply cannot afford yet another hit.

    For more, see Curtis Dubay’s analysis on how the proposed tax increases would affect small business.

    Posted in Featured [slideshow_deploy]

    23 Responses to Obama's Small-Business Tax Could Average $25,000

    1. Bobbie says:

      How come no one is asking him, why? Right to his face! Why does he insist on keeping his word of "sacrifice" when it doesn't have to come to that? Why he looks to punish where he has no business! Impeach him with his treasonous record and all wrong doings, his behavioral issues unethical, to show his skin color never mattered to America only to him and his activist associates. His treatment of America is unacceptable and beneath the standard America lives by. Please do something!

      Harry Reid wants to throw the hard work, time and money put into the (once every four years) U S Olympic uniforms in a bag and burn them because they were made in China paid by private funding (no American tax dollars) while he (democrats) stifles all bills for job growth in America's free market, increasing taxes in every insignificant place, legislating our inalienable rights, forcing mandates and more costs on businesses while lessening the qualifications for government dependency! What sad people democrats are showing the world they have become.

    2. Larry Harris says:

      Oh please! Rich people don't actually create jobs, the government does by giving contracts. The rich keep getting richer while the poor get poorer. Stop these lame attempts at portraying all of the rich as "JOB CREATERS", really? They just want tax breaks so they can put all of their money overseas! And hmmm, it's the REPUBLICANS who keep passing bills that allow, nay, encourage, outsourcing! Do you REALLY think that the Repubs actually care about poor and middle class people? They NEVER have! So why are so many rallying to their side? Just because they are feeding off ignorance and intolerance and acting like they actually care about morals, religion, etc… A PLOY AND A TRICK! Open your eyes Americans!

      • Bobbie says:

        Been in America long?

      • Art says:

        Holy smokes! You ARE a "True Believer." OK. I'm guessing you 22 and living in your parents garage.

      • Kevin Dill says:

        So then please explain who FULFILLS those contracts? All the businesses started by poor people? Some people are just stuck on stupid…

      • Betty says:

        I'm having trouble remembering who signed the NAFTA treaty which was the beginning of the exodus of jobs and businesses overseas . . . oh wait just remembered! That was Bill Clinton.

      • @terrisarten says:

        Yep. Another public school civics class student. I had to re-educate my children every time they came home from school and were told that the government created jobs by giving money to companies. Poor Larry never had someone to teach him the truth. Looks like he isn't interested either.

      • Susan Unger says:

        Seriously? Only the government creates jobs? The only jobs the government creates must be paid for by the taxpayers. Government just needs to get out of the way.

      • Bruce says:

        I'm guessing you work for the DMV.

      • Frank Boulay says:

        A little Bitter huh!! Larry put down the crack pipe and go to rehab, don't worry the tax payers will pay for it.

      • Todd Danza says:

        "Rich people don't actually create jobs, the government does by giving contracts."

        This is only true under complete socialism, where government controls all business interests. I'm surprised there are people who have so little common sense that I actually have to say this: Businesses create jobs. People create jobs by creating businesses and growing those businesses. People create jobs by buying from those businesses and making them profitable so they can grow. Criticizing business for being rich (whether or not they really are) and taxing them so that they can't grow just so the money can go to people who don't benefit anyone does NOT create jobs. Obamacare does not create jobs, it just makes it more expensive to hire Americans. It makes it more attractive to outsource jobs or not hire at all.

    3. Tim Farrell says:

      I hear the bats banging against the walls in your belfrey

    4. David Rider says:

      At least republicans are trying to stop sky rocketing food, energy, and transportation cost and prevent an oppressive tax. I have to assume you're not affected.

    5. shelley says:

      Larry, I am one of those evil small business owners. I started a new company after losing damn near everything over the last 5 years…yes, that's what Americans do, we overcome terrible situations by hard work, dedication and ZERO government funds. Government doesn't create squat. What does the government create on it's own that generates revenue? I started last year and recently added another employee, I would love to expand more, but it's my money and time at risk…and I don't feel good about investing in anything when Washington and 50% of the people out there are holding their hands out telling me to surrender what I have worked hard for and sacrificed to create. Liberals are trying to be so tolerant that they have become intolerant.

    6. Blair Franconia, NH says:

      Obamacare's going to cost small business.

    7. RedHawk says:

      I clicked the link to analysis hoping to see some confirmation calc of the $25,000 average. Nothing. Come on folks, if the AVERAGE is $25,000 then there will be gobs of businesses on the small end whose potential tax increases are very small and to claim that a business w/$200k AGI will see a 12.5% increase in their taxes is illogical even using the tax rates quoted in the analysis 3-4% max. Many large sales companies meet the definition of "small" business. I also find the claim about the number of jobs "lost" full of holes and unsupportable. The only claim I see as valid is that there are small businesses that have employees. I would expect no less.

    8. @terrisarten says:

      Net income is also known as cash in bank for small businesses. So cash in bank goes down $25K because of higher taxes, and liberals wonder why all those rich people making over $200K aren't hiring or spending money. It's the cash flow, stupid.

      • Mike says:

        Are you aware that the 3.5% tax increase is only for personal income OVER $250,000? An extra tax impact of over $25,000 would not be reached until a business was showing a profit of $964,286. You really shoudl educate yourself before speaking.

      • Frank Boulay says:

        Well said ! So easy for those on the sidelines , funny how they just know everything1

    9. Sm business owner says:

      I always have to ask myself when I think about the poor, is how can we help them. Jobs would help. Then I think where do jobs come from? Pretty much one place, from businesses. And who are the people who own businesses? Well people with money or those who take risks to own a business and maybe have more than others. Many fail, but the money comes from the private sector no matter how you argue otherwise. What should be the reward for risk? Taxation to stop the incentive of the risk takers?

    10. This is a red herring. As a business owner, my tax attorney had me incorporate as an S-Corp early on, so that my business was a separate entity than me. This is advantageous for a number of reasons, and only mom and pop operations file as sole proprietors these days. Small time operators aren't likely to be showing $250K of personal income in a recession. All of which means, this whole issue likely won't affect a smart business owner very much at all.

    11. Mike says:

      I am disgusted by the evil I am witnessing here. I don't know how it is possible, but apparently half the country is so stupid that you have been able to convince them that if you raise taxes by $25,000 a year on some guy who makes $950,000 a year, somehow millions of jobs will disappear. How can any intelligent person possibly believe that story?

    12. Small business owner says:

      The 250k aspect is business income. If I take a paycheck of 40k a year and I have an employee and most of the money goes back into the business, I have to pay another 25k in taxes? Marketing, rent, bills, utilities, computer upkeep, I and many small business owners can't pay this and stay in business and create jobs. It is not possible. I don't make 250k a year, neither does my business but yet 25k more a year is bologna when SMALL BUSINESS creates jobs. Period. If you don't think so then you are delusional.

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