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Oct 23

Small Business and Taxes under Obama

Small Business is a Cornerstone of the US Economy

In 2004, there were approximately 24.7 million businesses in the United States, according to Office of Advocacy estimates.

The Internal Revenue Service (IRS) estimates there were 29.3 million nonfarm business tax returns in 2004.

How do you create more jobs when you want to levy higher tax rates on the small business owners who are the nation’s primary employers?

In an article published 2 days ago in the Wall Street Journal, titled:

Socking It to Small Business:
The Obama plan is an incentive to hire fewer workers

“According to a Gallup survey conducted for the National Federation of Independent Business last December and January, only 10% of all businesses that hire between one and nine employees would pay the Obama tax. But 19.5% of employers with 10 to 19 employees would be socked by the tax. And 50% of businesses with 20 to 249 workers would pay the tax. The Obama plan is an incentive to hire fewer workers.

“For many months Mr. Obama and his band of economists have claimed that taxes don’t matter much to growth or job creation. But only last week Mr. Obama effectively admitted that even he doesn’t believe this. His latest “stimulus” proposal includes a $3,000 refundable tax credit for businesses that hire new workers in 2009 or 2010.

“So what sense does it make to offer targeted and temporary tax relief for some small businesses, while raising taxes by far more and permanently on others?

To read the whole of the article, visit here:

Small Businesses Will Suffer under Obama

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