Obama's Taxes on Small Business

WaPo has a pretty good story on the damage to be inflicted on small businesses by the Obama admin. This is no surprise since the biggest winners of Obama economic plans will be the crony capitalists that make up so much of the democratic party, after detailing the story of small businesswomen Gail Johnson the story goes on to say:

Since last year's campaign, President Obama has vowed repeatedly not to increase taxes for families making less than $250,000 a year. That pledge, while politically popular, has left him with just two primary sources of funding for his ambitious social agenda: about 3 million high-earning families and the nation's businesses.

Johnson, with her company, falls into both categories. If Obama's tax plans are enacted, her accountant estimates that her federal tax bill -- typically, around $120,000 a year -- would rise by at least $23,000, a 19 percent increase.

"You hear 'tax the rich,' and you think, 'I don't make that much money,' " said Johnson, whose Rainbow Station programs are headquartered near Richmond. "But then you realize: 'Oh, if I put my business income with my wages, then, suddenly, I'm there.' "

No kidding, how do you think people on Long Island feel about the 250,000 mark. Out here to successful people, hardly rich by any standard could be in the mark. That includes middle class professionals such as teachers as well.

Across the nation, many business owners are watching anxiously as the president undertakes expensive initiatives to overhaul health care and expand educational opportunities, while also reining in runaway budget deficits. Already, Obama has proposed an extra $1.3 trillion in taxes for business and high earners over the next decade. They include new limits on the ability of corporations to automatically defer U.S. taxes on income earned overseas, repeal of a form of inventory accounting that tends to reduce business taxes, and a mandate that investment partnerships pay the regular income tax rate instead of the lower capital gains rate.

You should be nervous, wait till Obama increases energy costs or foists health care costs. Who knows what crazy regulations and fees these guys are cooking up as we speak. Of course its all about fairness and inequality, but in the real world its about increasing the burden on those most likely to create jobs:

Whatever the figure, Republicans argue that those who fall into the upper brackets tend to be firms with the greatest capacity for job creation. In a 2007 survey, the National Federation of Independent Business found that about 15 percent of small-business owners -- and half of those with at least 20 employees -- said they expected their household income to exceed $200,000. In the Washington region, Census figures show one in seven families earn more than $200,000 a year.

"For the vast majority of people who earn less than $200,000, raising taxes on higher earners might not sound so bad. Yet a lot of small businesses are in that category," Sen. Charles E. Grassley (R-Iowa) said in a recent radio address. "Tell these business owners their taxes will go up; odds are, they'll cut spending . . . stop hiring and lay people off."

This is just one more disaster waiting to happen. Is it any wonder Obama may be liked, his policies less so.