The Small Business Tax Hike and the 97% Fallacy


The president and his supporters have repeatedly asserted that the expiration of these Bush tax cuts will have little impact because they affect only a tiny fraction of the wealthiest Americans.

Vice President Joe Biden....there aren't 3% of small businesses in America that would qualify for that tax cut and House Speaker Nancy Pelosi flipped this number around, saying that the planned tax increases would exempt about 97% of small businesses.

The numbers are clear to everyone except the current adminstration....... According to IRS data, fully 48% of the net income of sole proprietorships, partnerships, and S corporations reported on tax returns went to households with incomes above $200,000 in 2007. That's the number to look at, not the 3%.
Let's put it in a bold typeface so it attracts a bit more attention.......
48% of small business income reported to the IRS comes from households with incomes that will be affected by the Democrat's tax hike.

It's clear that business income for large and small firms will be hit by the higher tax rates. And in point of fact, firms of all sizes contribute to the nation's prosperity.

The president's plan to raise top marginal rates is holding back the very people who should be leading the economic recovery.

The fact is this will cost jobs. But in the end, we know that job creation isn't really what it is about. It is all about wealth redistribution - fairness and shared prosperity. Because.......
The administration professes deep concern about the $700 billion revenue loss from extending the tax cuts at the top, but apparently views the revenue loss of nearly $2 trillion from extending the tax cuts for the middle class as too inconsequential to mention. Nor has the administration's concern about the deficit driven it to reduce federal spending.



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