More NBC Lies About Small Business Taxes

 

www.democrats.com

On MSNBC's Morning Joe, CNBC's Maria Bartiromo lied about tax increases for small business, and MediaMatters busted her:

"small businesses, you know, are putting $250,000 in revenue out there, and they're going to get impacted -- and this is the single largest creator of jobs."

So, Bartiromo says small business taxes will be raised if the business grosses over $250,000 in revenue. But that's a lie.

First, a small business that is not a personal business is taxed at corporate tax rates, which will not change under Obama's plan.

Second, a small business that is a personal business will only see higher taxes on the profit (i.e. personal income) that exceeds $250,000, not the gross revenue.

So how many small businesses would be affected? Just 1.5% (481,000) of all small businesses, according to the Tax Policy Center. In other words, 98.5% of small businesses will get a tax cut!

Even for the unlucky 1.5%, the tax increase is tiny: the value of tax deductions for families earning over $250,000 would drop from 35% to 28%. So $10,000 in deductions would save a wealthy taxpayer $2,800 in taxes instead of $3,500 - a small net tax increase of $700. Amazingly enough, that's how deductions worked in the 1986 tax bill signed by Saint Ronald Reagan.

The core rightwing argument is that this tiny tax hike will cause small businesses to cut back or even shut down. This is a Big Lie - obviously it will have no impact on small businesses whatsoever.

So where is this Big Lie coming from? House Republican Leader John Boehner and the stenographers at the Pentagon Post

If the tax-deduction cap is enacted, it is likely to hit many small businesses, said House Republican Leader John A. Boehner (Ohio).

"Everyone agrees that all Americans deserve access to affordable health care," he said, "but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?"

and the Mexico City Times:

"Everyone agrees that all Americans deserve access to affordable health care," Mr. Boehner said in a statement, "but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?"

Update 1: Joe later echoed Maria's lie on Twitter:

$250k also drags in small businesses, who generate 75% of US jobs. Bad news for economy.

 

 

 

JojoWazoo JojoWazoo
46-50, F
5 Responses Feb 27, 2009

So what you're saying is that their aversion to paying taxes is because they care about us and don't want to charge us so much to pay the corporate taxes? That's what I get out of what you just said. I say tax the churches. That will solve all of our problems.......

Good for you, Jojo! I support him too :D

Well, it's all a farce, first Joe was not Joe and he was not a plumber! LOLOL I'll never stop laughing over that jerkoff!<br />
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Second, businesses have so many things they can write off and depreciate to reduce their taxes. I don't feel bad for business, I wish I had a business that made $250k a year. I'd certainly not complain. Too bad the economy tanked after the past 8 years. We were seriously considering going into business for ourselves. Who can survive now? No one is going to take care of the little guy, not when they're going to send more money to CITIbank! It's despicable!

I always wonder why there is so much emphasis on business taxes when everything I have found to read leads me to believe that corporate income taxes only account for around 15% of the federal revenue.<br />
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Maybe it is just me but that feels small given the constant banter from businesses on how over taxed they are.

lol at the posturing that they're only looking out for small businesses. Ya, they're all about protecting Joe the Plumber...try again.