Posted on 08/05/2010 11:08:36 AM PDT by Andrea19
...GEITHNER CLAIM #2: "Now some have argued that even if only a few percent of small business owners make over $250,000, these few make up a vast amount of supposedly small business income. This argument apparently counts anyone who receives any type of partnership or business income as if they were a small business. By this standard, every partner in a major law firm and every principal in a major financial institution would count as a separate small business. A CEO who has board fees or speech fees would also count as a small business owner under this overly broad definition."
FACT: There are eight million partners and S-corporation shareholders in America. Are they all "fake entrepreneurs?"
...
GEITHNER CLAIM #4: “[Extending tax cuts for the top 2 percent would be among the least effective forms of stimulus]because the top 2 percent are the least likely to spend those tax cuts, certainly not in comparison to the 98 percent of Americans who make less than $250,000 per year. While they would surely welcome an extended tax cuts, it's not likely to change their spending habits.”
FACT: In fact, as the New York Times reports, “the top 5 percent in income earners — those households earning $210,000 or more — account for about one-third of consumer outlays, including spending on goods and services, interest payments on consumer debt and cash gifts, according to an analysis of Federal Reserve data by Moody’s Analytics. That means the purchasing decisions of the rich have an outsize effect on economic data...”
Read more: http://www.atr.org/point-rebuttal-geithner-tax-speech-a5290#ixzz0vkuNlPvn
(Excerpt) Read more at atr.org ...
Help promote Conservative activism here & here & here & here
I’m curious how many of the 8 million S-Corp and partnership taxpayers used Turbo Tax....and used it correctly. The Secretary of Tax Cheats probably doesn’t want to know that statistic.
Turbo Tax Timmy is a punk.
Rebuttal to similar article:
1) “…these top earners don’t spend as much of their income as lower earners..”
What DO they do with that money? Eat it?
They invest it, making it available for others to borrow!
They expand their business, hiring new employees!
“Dollar for dollar, each of these measures would have about three times the impact on GDP as continuing the Bush tax cuts.”
Unsubstantiated claim, which ignores the impact of companies controlling their own destiny, by managing their money directly and not after skimming by multiple government agencies.
2) Less than 2 percent of tax returns reporting small-business income are filed by taxpayers in the top two income brackets
IF the government CONFISCATED ALL OF THE INCOME from these individuals, it would NOT fix the spending problem in Congress.
The issue is that these Small Business owners can not grow, hire, or expand in this high tax environment!
3) “The tax cuts also raised government debt”
This is a lie!!!!
UNCHECKED SPENDING “raised government debt”!
The tax cuts produced the HIGHEST EVER FEDERAL TAX RECEIPTS IN 2007.
4) Please note that the author’s own arguments here, contradict the conclusions he offered in item #3.
“The main culprit was the recession”
The “main culprit” was UNCHECKED GOVERNMENT SPENDING!
Quickly followed by the knowledge that Obama policies would end the Bush Tax Cuts, and impose endless government regulation, strangling business at all levels.
5) “….the continuation of current fiscal policies, including the Bush tax cuts, would lead to a national debt….”
The author is incapable of recognizing cause and effect!
Tax cuts are proven to promote growth, leading to ever higher Federal Tax receipts.
J.F.K. “A rising tide lifts all boats”!
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