Skip to comments.Senate Votes to Raise Taxes on Small Businesses
Posted on 07/26/2012 7:38:05 AM PDT by IbJensen
Yesterday, the Senate narrowly voted (51-48) to raise taxes on 1.2 million small businesses, which will likely kill more than 700,000 jobs at a time when nearly 13 million Americans are out of work. Senators Joe Lieberman (I-CT) and Jim Webb (D-VA) joined all Republicans in bipartisan opposition to the tax hike.
This is President Obamas economic plan. This is what he asked Congress to do. And he recently told a fundraising crowd that his economic plan has been working.
Just like weve tried [Republicans'] plan, we tried our planand it worked, he said.
But Obamas Treasury Secretary, Timothy Geithner, said yesterday that the economy is not growing fast enough, acknowledging that unemployment is very high. The institutions with authority should be doing everything they can to try to make economic growth stronger, he said.
The Presidents plan, now endorsed by the Democratic majority in the Senate, has little chance of going anywhere in the House of Representatives. But it has put the 51 Senators who want to raise taxes on record.
Perhaps the biggest lie in the tax debate is that this vote affects only the rich. Thats simply not true. Many small businesses, known as flow-through businesses, pay their taxes through the individual income tax. Ernst and Young estimates that these types of businesses employ 54% of the private sector work force. This tax hike squarely hits 1.2 million of these businesses that hire workers and have incomes above $200,000.
Rather than punishing just the rich, as Heritages Curtis Dubay notes, By pinpointing his tax increase on incomes over $200,000, President Obama has maximized the detrimental impact that his tax increase would have on job creation.
The Ernst and Young study on the impact of this tax hike showed that it could kill more than 700,000 jobs. This isnt surprising, since the businesses it targets are some of the countrys most robust job creators. But it is surprising that a majority of the Senate would go along with this plan when the country is suffering from 8.2 percent unemployment.
As if that werent enough, the Senates actions would also raise the death tax from 35 percent to 55 percent. This confiscatory rate would hit small businesses and family farms exceptionally hard. Dubay explains:
The death tax is often portrayed as a tax that only rich heirs pay. In reality, the death tax hits family-owned businesses hardest. These businesses are valuable on paper because they have many assets that they need to make and sell their products. But the businesses book values are not representative of the families liquid assets. When a family member passes on, these families often have to sell all or part of the business to raise the cash to pay the death tax. This slows the growth of these businesses and in some cases forces them to lay off existing workers.
The Senates vote means we are no closer to preventing Taxmageddon, the nearly $500 billion tax increase scheduled to hit Americans on January 1. It is difficult to imagine the economy sustaining such a blow. Families will be hit with an average tax increase of more than $4,100 next year if Congress allows this to go forward. Instead of preventing this calamity, the Senate voted to raise taxes. It simply boggles the mind.
Small business owners should protest by laying off all registered Democrats on their payrolls.
The dumbass populace does not realize that this was a tax increase on small businesses, and it will close and/or cause more lost jobs.
That is assuming they care about jobs or taxes or the USC or America.
Nearly half the country is takers.
is = are
This is why Oboma is saying his economic plans have worked. More people are dependent on the federal government under Oboma than any time in American history. This is the "change" he was talking about. This is his attempt to ceate the communist revolution the left has been waiting for since FDR.
“but the Senate may propose or concur with amendments as on other Bills.”
The Senate can propose an amendment on a bill originated in the House. They can’t propose their own.
Amendments... I knew I was missing something. Thank you for the clarification.
So essentially, they can’t do what they did, but they did it anyway.
Is there a doubt in anyone’s mind that the Constitution means nothing to anyone anymore?
Please support John Raese for Senate.
“At the age of 71 I was unable to find work. So I created a job for myself.
I purchased a failing franchise business called GoinPostal. My son & I will run it & we will succeed despite what the gubmint does to us. This is still a free society where you work to succeed. So far.
I say SCREW EM.”
But you didnt build that.
I hope she has learned from this painful lesson. . .get her signed up to vote the communist out this November. We need ALL the help we can get!!
It’s still Bush’s fault, right?
“And he recently told a fundraising crowd that his economic plan has been working.”
He’s actually telling the truth for a change. His plan IS working. His plan is to completely destroy the US economy.
Actually doesn’t matter if they voted to raise them. If hey hadn’t, King Barack would have raised them anyway by executive fiat.
Tell that hairdresser there’s one way to help get the government off her back: vote republican or libertarian
Family farms are also on the Kings hit list. He wants to eliminate them.
My moms hairdresser owns her own shop and has for a long time. Shes a confirmed Democrat and LOVES Obama.
Lately she is complaining about all the government interference with small business owners.
Also, one of the first things people curtail in hard times is non essential luxuries... like a trip to the hairdresser. Guess whos business has suffered?
Too late NOW!
And she will vote for obama again even if she’s run out of business. Thats just how brainwashed they are.
Right, but she’s your typical dyed in the wool Liberal.
She’s smart enough to by the half-a^%ed Liberal logic, but not smart enough to consider that alternatives exist or to challenge what isn’t working. It’s pathetic because she’s a really nice girl, otherwise.
It’s typical I think.
They have been so conditioned by Liberal BS that looking at things any other way (even IF alternatives would work FOR them) that they won’t consider another point of view.
Raising taxes does NOT bring in more government revenue. That’s the Big Fallacy all along.
Democrat-controlled Senate Votes to Raise Taxes on Small Businesses
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