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As a small business person, Obama's tax increases would only have you pay a few additional per cent on the amount of PROFIT (not revenues) you made in excess of $250,000. On the amount under $250,000 you would be taxed at the same rate as you are now.
That won't work for me, as my pass-through accounting income is above $250,000 but below $1 million. No matter, after 2012 I'm done. Obama's "tax the small business owner even more" policy is the final blow. I'm already a tax slave for nearly 4 months of the year. I will NOT be a tax slave any longer. I'm winding down my business, selling off the assets, and pink slipping my employees.
"Update: A reader points out the CBO's transfer data includes state and local transfers, but the tax data includes only federal taxes. If state and local taxes were included, or if state and local transfers were excluded, the middle quintile might well turn positive, though the CBO does not provide the data to establish that conclusion definitively."
And we already know that lower and middle income people pay a substantial amount of their taxes in state and local taxes.
I'm already a tax slave for nearly 4 months of the year. I will NOT be a tax slave any longer. I'm winding down my business, selling off the assets, and pink slipping my employees.
Great. The buyer will pick up the market share, need the employees, and volla, the economy will not notice any change. (I am assuming your corp offers a viable product or service, as ours does.)
"Update: A reader points out the CBO's transfer data includes state and local transfers, but the tax data includes only federal taxes. If state and local taxes were included, or if state and local transfers were excluded, the middle quintile might well turn positive, though the CBO does not provide the data to establish that conclusion definitively."
And we already know that lower and middle income people pay a substantial amount of their taxes in state and local taxes.
But their effective tax rate including transfers is still substantially negative.
The same data was examined for 2004, including state and local taxes. The following two charts were the results. They show data very similar to what the Harvard Economics Department Chair found:
But their effective tax rate including transfers is still substantially negative.
The same data was examined for 2004, including state and local taxes. The following two charts were the results. They show data very similar to what the Harvard Economics Department Chair found:
Nevertheless all Obama wants to do is raise the top two marginal income tax rates to be 39.6 percent and 36 percent, instead of the current 35 percent and 33 percent.
And change the marginal tax rate on capital gains. Which is fair since wealthier people make substantial income from capital gains, whereas for the average person, that represents a small portion of their income.
And eliminate some loopholes the wealthy use to avoid taxes.
That's your prerogative obviously. But the federal tax rate on the amount above $250,000 would go from whatever it is now, 28 % I'm guessing, to ~ 34 %, isn't that correct? Would that really be so crippling?
It would go to 39.6%. If you don't believe that's crippling, YOU pay 39.6% of your income to the US Treasury. Deal?
Quote:
"The president proposes to allow the top tax rate in 2013 to increase from 35 percent to 39.6 percent"
But that is ignoring all the state, local and excise taxes lower income levels pay. Federal tax is just one piece of the pie.
Already posted the data. Very similar to the Harvard Economics Chair's analysis.
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