FACT CHECK: GOP adrift on small business claim

[SemiCharmedQuark]

By CALVIN WOODWARD, Associated Press Writer Calvin Woodward, Associated Press Writer – Thu Feb 26, 6:14 pm ET

WASHINGTON – Claims that President Barack Obama's tax plans are an assault on small business skirt the likelihood that most job-producing small businesses wouldn't feel that pinch at all.

"Obama is proposing to raise taxes on households earning over $250,000 by increasing the rate on the top two tax brackets and limiting deductions, starting in 2011.
Republicans and other critics, knowing they will get little mileage from defending the rich, instead are casting the plan as a tax hit on people who run industrious little companies driving job growth.

That's not likely, according to one in-depth analysis, which found that more than 95 percent of small business owners would be off the hook.
Obama does not propose higher business taxes.

But critics reason that owners of many small companies report business income on their personal tax returns instead of filing corporate taxes. That exposes their business's earnings to Obama's higher tax rates on the wealthy.
To be sure, some business owners would get caught in that net.

But for one thing, most small businesses don't create jobs. They tend to be lawyers, accountants and other professionals who earn some of their money from partnerships or otherwise organize themselves as a business entity.

As well, many small businesses with employees don't earn enough to put their owners over the threshold for the higher tax rates."

http://news.yahoo.com/s/ap/20090226/ap_on_go_co/fact_check_budget

[FrenchieCat]

1. Yep....if someone is clearing over $250,000 per year as a small business,

they are operating as an Sub Chapter S corp, or an LLC....not as a sole proprietorship on a schedule C....where one has to pay 15% on the first 103,000 of earnings, and pay medicare on the whole thing.

No one is dumb enough to do this except a person who has no business advisor.

[FrenchieCat]

2. And they are not adrift......they are plain out lying!

[rwheeler31]

3. They have been pushing this small business crap for years.

It has never made sense.

[Thrill]

4. Too bad the TV news media doesn't bother to do any true reporting