[Halfmanhalfamazing]

Washington Post: Small Businesses Brace for Tax Battle Under Obama Plan, Some Entrepreneurs' Bills Would Soar

[1010RD]

You don’t start a fire by drenching the flame.

[ByteMercenary]

Unfortunately, the entire process is beyond the understanding of the typical Obama-voter, and therefore meaningless. Gross profit, expenses, net profit, inflation indexes, capital gains, you may as well be speaking Vulcan to those people.

I saw an interesting comment recently: we now have the least competant POTUS elected by the least educated majority in history.

[Thrownatbirth]

Don’t forget that businesses were also hit with the minimum wage hike last summer.

[Jack Hammer]

Everything is the property of The State: we allow you to keep enough to eat and continue working for The State.

[Venturer]

It isnt only Obama voters who arent smart enough to figure out taxes, but the bottom line is more to the Government and less to me. I can understand that.

Wait until these people get hit unknowinly with these increases, along with the bill for Cap and Trade and other things coming down the line.

[6SJ7]

"Johnson declined to say whether she voted for Obama. But she said she ignored his tax plans until her husband, who handles real estate and construction for the schools, mentioned it one day. 'I've since talked to my accountant,' she said. 'And, oh, my gosh!' ..."

From this statement we can infer; 1. She voted for Obama. 2. She swallowed the MSM "hope and change" and/or "hate Bush" routine whole. 3. She just woke up.

[sirchtruth]

The thing that bothers me more is continual abandonment of the Idea Of America by the people. The reducing of common sense standards. The trashing of American values. Of course all these things lead into the economics over all, but if the country is to ever get back on track we have to restrain those who would destroy our good heritage first.

[Alberta's Child]

The basic premise of this article is somewhat misleading. The whole purpose of organizing a company as an "S" Corporation is that it allows the owners to report profits to their individual tax returns rather than for the company as a whole. This enables the company to avoid paying what could otherwise be very high corporate taxes before the shareholders are paid dividends.

If the Federal government raises taxes on individual earners -- and by extension the owners of S-Corporations -- then the S-Corporation will lose a lot of its advantages.

Ironically, I predict that under this scenario the regions that will be most devastated financially are those where S-Corps are used to avoid paying corporate taxes on the state level. Businesses in New York, for example, would no longer have any reason to organize as S-Corporations . . . which means they may very well have a strong incentive to stop doing business in New York.