House Democrats Vote To Saddle Small Businesses With A Job-Killing Tax Hike
(Djou voted No, Hirono voted Yes)
from GOP.com
Today, House Democrats Voted To Raise Taxes On Small Businesses. (H.R. 4853, Roll Call Vote # 604, 12/2/10)
HOUSE DEMOCRATS’ BILL RAISES TAXES ON SMALL BUSINESSES
Nearly Half Of The Business Income That Is Reported On Personal Tax Filings Goes To Families And Businesses That Would Have Their Taxes Raised By Democrats. "The numbers are clear. 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%." (Kevin A. Hassert and Allan D. Viard, Op-Ed, "The Small Business Tax Hike And The 97% Fallacy," The Wall Street Journal, 9/3/10)
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“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.” (Kevin A. Hassert and Allan D. Viard, Op-Ed, "The Small Business Tax Hike And The 97% Fallacy," The Wall Street Journal, 9/3/10)
AP Fact Check: Majority Of Small Businesses To Be Hit By The Democrats’ Tax Hike Are “Small, Even Tiny Businesses.” “THE FACTS: The 3 percent figure is statistically correct, but misleading. That's because the overwhelming number of small businesses are very small, even tiny. And there are a lot of them - for instance, a house cleaner, a dog walker, an ice cream vendor, somebody who makes money selling things on eBay. In reporting the raw numbers of tax returns that include business income, the Internal Revenue Service doesn't distinguish between small homegrown businesses and far less common but extremely profitable ventures such as some hedge funds and doctor and lawyer partnerships.” (Tom Raum, “FACT Check: Small Business Caught In Tax Battle,” The Associated Press, 11/29/10)
According To The Joint Committee On Taxation, 750,000 Small Businesses Will Be Affected By The Democrats’ Tax Hike. (The Staff Of The Joint Committee On Taxation, “Present Law And The President’s Fiscal Year 2011 Budget Proposals Related To Selected Individual Income Tax Provisions Scheduled To Expire Under The Sunset Provisions Of The Economic Growth And Tax Relief Reconciliation Act Of 2001,” Joint Committee On Taxation, 7/12/10)
“According To An NFIB Poll, 75 Percent Of Small Businesses Are Organized As Pass-Through Entities (Sole Proprietors, Partnerships, S Corps, Etc.), Meaning They Pay Taxes On Their Business Income Based On The Individual Tax Rates.” (“Keeping Tax Rates Low,” NFIB, Accessed: 11/22/10)
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Increasing The Top Two Income Tax Rates Will Hit Small Businesses That Employ 25 Percent Of The Workforce. “Raising the tax rates on the top two income brackets also has a negative impact on small business job creation. Based on an NFIB small business survey, the businesses most likely to face a tax increase by raising the top two rates are businesses employing between 20 and 250 employees. According to U.S. Census data, businesses with between 20 and 299 workers employ more than 25 percent of the total workforce.” (“Keeping Tax Rates Low,” NFIB, Accessed: 11/22/10)
WHILE KILLING JOBS AND SLOWING ECONOMIC RECOVERY
“Many Entrepreneurs Say They Plan To Hold Back” On Hiring “For Some Time.” “Delta Children's Products, a furniture maker in New York with 120 employees, is only filling critical vacancies. U.S. small businesses continued to hire in November, this time adding the most jobs in a month's time in nearly three years, according to payroll company Automatic Data Processing Inc. But job growth remains modest compared with prerecession years, and many entrepreneurs say they plan to hold back for some time to come.” (Sarah E. Needleman, “When It Comes To Hiring, Main Street Remains Reluctant To Fully Open Its Doors,” The Wall Street Journal, 12/2/10)
Business Owner Says “We Are Scared To Hire” Because Of Higher Taxes And “Unfriendly Business Environment.” “Delta Children's Products Corp., a 42-year-old New York-based furniture manufacturer with 120 employees, has seen its revenues increase for the past two years in a row after a 25% drop in 2008. But for the most part, the family business is only filling critical vacancies. ‘We are scared to hire,’ says Joseph Shamie, chief executive. ‘We are very concerned about the new taxes, the unfriendly business environment and health care. We are in the dark right now.’” (Sarah E. Needleman, “When It Comes To Hiring, Main Street Remains Reluctant To Fully Open Its Doors,” The Wall Street Journal, 12/2/10)
Oregon Businesswoman Says She Has Cut Back On Staff Because Of Higher Taxes And The Threat Of More Taxes In The Future. “Target Plastics Inc., a Salem, Ore., maker of custom plastic products, used to have seven employees, but now it has only two full-time workers, with an additional person working half-time, said owner Melissa Hescock. ‘I've basically cut back because of the amount of taxes,’ Ms. Hescock said, including recent state increases and anticipated future federal boosts. ‘I have fewer people doing more work.’” (John D. McKinnon, Ben Levisohn and Justin Lahart, “Worries Over Tax Hikes Coloring Business Decisions,” The Wall Street Journal, 9/13/10)
Read more: http://www.gop.com/index.php/briefing/comments/left_out_in_the_cold#ixzz170SIUMPA
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