From Yahoo news:
Five Things You Might Not Know About Obama's Small Business Tax Hikes Wed Oct 15, 11:50 AM ET
***Record Tax Hike on Small Businesses Will Kill Last Job-Creating Sector***
WASHINGTON, Oct. 15 /PRNewswire-USNewswire/ -- Americans for Tax Reform today released the following "top five" facts related to the Obama tax hike on small businesses:
1. Two-thirds of small business profits are earned in households
making more than $250,000 per year -- the very households Obama is
shouting from the rooftops that he will raise taxes on (Source:
IRS Statistics of Income Bulletin*). Small business profits are
used to create jobs and invest in America. This is the answer to
the Obama campaign's irrelevant claim that the number of small
businesses affected will be small -- the fact is that the bulk of
profits will face a tax hike.
2. Small businesses pay income taxes at the household level. This
means that the Obama plan to raise tax rates is a direct tax hike
on small businesses -- sole proprietorships, partnerships,
S-corporations, and family farms
3. The tax rate on the lion's share of small business income could
reach 54.9 percent under a President Obama(the individual top rate
will climb from 35 percent to 39.6 percent and the Social
Security/Medicare tax rate could climb from 2.9 percent to 15.3
percent. Put those together, and you get 54.9 percent)
(Source:barackobama.com)
4. This 54.9 percent tax rate would be the highest since the Carter
Administration, when America suffered through double-digit
inflation and unemployment (Source: Congressional Budget Office)
5. America's 26 million small businesses employers give a paycheck to
116 million employees (Source: Census Bureau). When small business
taxes go up, millions of these employees will be at risk of being
laid off.
"Obama's tax increases will only affect you if you have a 401(k), have any savings, buy things from small businesses or are looking for a job," said Grover Norquist, president of Americans for Tax Reform. "If you fall into one of these categories, his policies will screw you. Otherwise, you're fine."
* "Small business profits" is equal to the net profits less net losses of sole proprietors, S-corporation shareholders, and partners. According to the IRS, two-thirds of these small business profits are earned in households with adjusted gross income (AGI) equal to or greater than $200,000. In 2006, $473 billion of the $706 billion (two-thirds) of small business profits was earned in households Obama has said he would raise tax rates on.
http://news.yahoo.com/s/usnw/2008101...ness_tax_hikes