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A central debate in the fiscal cliff talks is over how much higher income taxes will hit small...

A central debate in the fiscal cliff talks is over how much higher income taxes will hit small businesses, which pay the individual rate via their owners' returns. A study last year found that tax hikes for incomes of over $500K - Obama's threshold is $400K - could hit 750K firms that receive about 56% of all income of such businesses. John Boehner's $1M threshold could hit 311K companies that account for 41% of income.
Comments (6)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
    And the real issue is that neither proposal even comes close to solving the country's debt problem. Let's face it we cannot erase the debt of this country overnight. Not even in a decade. But raising tax revenues by $800 billion, over TEN years, as the President proposes is grossly insufficient to even denting the problem. We need to CUT expenditures in order to even begin moving in the right direction.
    Ho, Ho, Ho and Merry Christmas
    20 Dec 2012, 05:26 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
    Well, with the economy booming like it is, it's not like we need the potential jobs this will destroy.


    Oh wait...


    The U.S. government does not have a revenue problem. It has a spending problem. You don't help a drunk get his drinking under control by buying him extra booze. Until the runaway spending gets addressed in a serious manner, no silly "fiscal cliff" deal is going to even begin to fix the country's financial mess. Our government has been corrupted into what amounts to a mafia protection racket run by Congress critters and whomever happens to be in the White House that is used by them to squeeze money from private citizens for lining their own pockets and getting themselves re-elected.
    20 Dec 2012, 06:07 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
    What happened to "We are all Keynesians Now?"


    Both parties agree that raising taxes midst of Malaise II is a good thing?


    Bring back the Keynesians.
    20 Dec 2012, 08:02 AM Reply Like
  • njrobby
    , contributor
    Comments (85) | Send Message
    The Prez and the libs have performed one of the best propaganda campaigns in modern US history. Every idiot without a calculator, or a pen and paper, is convinced that the current mantra "raise taxes on the rich... pay their fair share..." will actually balance the budget or help it do so in some meaningful way. It will never remotely come close. But, the straw man continues to get all the attention while the "pay for votes" or debt spending continues unabated by the majority with an ax to grind or their hands held out for a payoff.
    20 Dec 2012, 08:03 AM Reply Like
  • frosty
    , contributor
    Comments (689) | Send Message
    A 'small business' has fewer than 250 employees. Some of these are multibillion dollar businesses. However many have no employees or only family members as employees. Many small businesses are set up solely for tax, insurance or liability-limitation purposes. Some are set up solely for investment purposes. My wife and I own an LLC with no employees and the income passes through to our joint 1040. There are many, many such small businesses. Why is it unfair to increase personal tax rates in such situations? As far as job losses go - a tax increase on 'small businesses' is highly unlikely to have any material effect nationwide. When politicians broadbrush the 'small business' palet, they serve only to confuse the public understanding of what kinds of small businesses there are and the differential effects tax policy might have on them.
    20 Dec 2012, 08:41 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
    Mr. frosty. It will be an interesting study, perhaps led by a Ph. D. candidate from an Ivy League school how one of their own led a nation stumbling through a long and protracted economic malaise to a place where it was consensus opinion that now is a good time to raise taxes in order to achieve "fairness."


    Like a few interested Americans, I watched President Obama's press conference yesterday. I was appalled at the juvenile nature of the discussion. He spoke of "millionaires and billionaires" as if the campaign were still on. I'm not surprised that half the nation can't reckon the difference between a millionaire and a billionaire--math ain't our thing, but I was shocked by the ease in which Ivy League educated journolists, sorry, I was thinking "journolistas," it should be "journalists" sat mesmerized as if they were reporting on Solon or Socrates.


    You make some good points. You jab small businessmen here and there, and they'll probably find a way to keep going. But is this what we want for the leading nation of the free world? To keep going? And where do we go?


    Sorry, that was answered in the recent election:


    20 Dec 2012, 09:22 AM Reply Like
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