Obama wants to tax small business over 250,000. Most aren't there today. Don't most want to be over 250,000?

Question

I'm just trying to make sense of this all, and I think the 250,000 is on personal income, I would think small businesses would be a business tax unless its a sole propreitorship (I can't spell it its been 8 years since Business classses)

So the Obama supporters are saying "this won't affect most businesses" since most make less than 250,000.

Don't most business want to increase their revenue, profit, and income? And won't successful businesses eventually go over that 250,000 mark?

Answer 1

$250K is personal income ($200K for single tax payers). However, many small businesses are "Schedule C" businesses and they pay their taxes through form 1040 - personal income tax.



Barry is an idiot if he thinks that this level won't hurt small businesses. Prices will be increased and employees laid off.



PLUS, I don't believe his lies about that income level. With all the goodies he's promised, the money has to come from someplace and they can't keep printing money!



MAKING A PROFIT IS GOOD! Profits are not evil things that you should try and destroy!

Answer 2

first error in your question:

The tax on the business is on the GROSS income not the NET income.

If you work on a 20% profit margin and your gross is $250K, your net is $50K.

Obama wants you to make less than $50K. He will tax you until you DO make less than $50K.

Second implied error in your question: The result is: You won't only be paying the business tax on the initial $250K gross, but you will ALSO be paying your personal income tax on the $50K you were able to keep for yourself. (You can still get more money when you pass the cost of the tax increase on to the consumer of your product. The end user always pays all the taxes on a business anyway.)

Considering the work involved in operating a busyness, why bother running your own business,

ESPECIALLY considering you will have to pay 100% of your own Social Security tax which is DOUBLE what an employee of a corporation pays, since the corporation pays the other 50%.

Any why would you hire ANYONE? You then get stuck with paying for their health insurance, half of their S.S., etc.

Just quit and get a Government job. Let everyone else pay your salary and you can't get fired for screwing around.

Answer 3

Any small business who is not a Corporation files individual tax returns to both the IRS and State. (Sub S, LLC's, LLP.s etc are all on the owners individual tax returns) They also still pay the State business tax, personal property tax, many other taxes that deal with a business. YES most small business's would love to make over $250,000/year. Obama forgets that the majority who make over this amount ARE small business owners who employ people, who pay those employees health insurance, etc. OBAMA WILL DESTROY THIS COUNTRY.

Answer 4

The justification for raising taxes only for those making over 250K is sound, however it will hurt more small businesses than you think. A company (in my field of interconnect telecommunications) can easily earn 250K with less than 10 employees. If you consider payroll, other operating expenses (trucks, tools, inventory, office and clerical supply and sales expenses) 250K really isn't that much. I do understand your thinking though, as a medium income earner I won't hit 250K probably ever.

Answer 5

Obama does not believe in the American dream he says he won't tax small business over250,000 to me that is small potatoes for small business and if you do make a penny short he has you with income tax anyway!

Answer 6

Most businesses have to make over $250,000 just to pay expenses. Obama knows this. He is deliberately misleading people, trying to make them think firms over $250,000 are big corporations.

Answer 7

The idea behind this is curbing the fraudulent practice of many big businesses using corporate loopholes to avoid paying their fair share in taxes, as well as using offshore banking accounts to cheat the system. The tax plan is discussed in depth in the non-partisan Tax Policy Center's analysis of the two candidates' plans. It further describes how McCain's plan to further cut corporate taxes will increase the national deficit by $5 trillion (as opposed to $2 trillion for Obama).



http://www.taxpolicycenter.org/publications/url.cfm?ID=411749

Answer 8

you're neglecting to ingredient interior the tax credit for company costs, the tax credit for hiring american workers, the various and diverse different tax credit that those smaller companies get, and could proceed to get. although most of the companies use those credit and different tax loopholes to pay a small fraction of the taxes that they should (that's what happens once you may have the money for to hire accountants and actual expert tax legal specialists) and those loopholes are going to be closed up. yet once you fairly think of that those making decrease than 250k ought to proceed to pay the vast majority of this countries taxes collectively as the companies that they artwork for, sweat for, purchase from, and actually help in each way are exempt than perchance collectively as we adverse saps are socialists, you're an elitist.

Answer 9

Since Franklin Roosevelt the democrat strategy has been to pit the masses against a relatively small group of wealthy people. Remember each of us only get one vote no matter how much money we have. Some democrats vote multiple times. Even dead people have been known to vote democrat. That is why it is democrats that think it is intimidating to have to show I.D. to vote. Left leaning government schools are cranking out left leaning voters that are ashamed of America. I suspect that it is a small minority of students that know that Abraham Lincoln was our first republican president.

Answer 10

Taxes on business stifle business and new job creation. It's been proven about three thousand times in history.



Naturally, businesses would not want to make more than 250K to hit that new bracket, which is such a detriment to their earnings. Obamas plan will completely destroy what is left of our economy.

Answer 11

Yes, it is for personal income tax, and a small business owner can avoid the taxable liabilities by incorporating the business and taking a salary instead. Excess funds should be used to enhance the business in the first place, not taken out as windfall profits.

Answer 12

I have heard of rescinding the tax cuts for individual incomes over 250k? But where is the source for taxing businesses over 250k?



He also wants to increase the cap on SSI tax. I fully agree with that. Why should a person making 105k pay the same amount into SSI as someone making 500k?

Answer 13

his tax plan makes no sense, he will encourage and cause buisnesses to go under and prevent buisness growth. big companies will look to other countries to start up bc the corp rate tax is already the highest in the world and obama wants to raise it even more. so in other words more jobs will be lost and he will tax the average joe to give to more give away programs. he is such a corrupt anti american racist politician with an agenda that will end up bankrupting this country. if anyone would bother to ask how his tax plan would work and try to get him to explain it, it would be so clear that he intends on raising all our taxes in a time when our economy cant take it.

Answer 14

I don't know where Obama supporters get the idea that most sole proprietorships (and other business owners with less than 15 employees) make less than $250,000.00, but I'd like to see their stats. I think we're all just guessing off our heads.



But what many fail to talk about is also what Obama has said about "closing those loopholes." What exactly does he mean by "closing those loopholes." Businesses currently paying income tax on less than $250k might find their income over that amount, depending on what "loopholes" are closed.



I've been doing my own taxes for years, and I don't know what loopholes he thinks he needs to close.



Oh, and I agree with your premise. I see no reason to grow my practice if the government gets the benefit and I don't.

Answer 15

The IRS released information recently stating that if you make over $32,000 you make more money than 50% of the US.



It simply won't affect most mom and pop business who according to median income and small business surveys do not make nearly that much.

Answer 16

I keep hearing that is them who don't pay a dime in taxes because they add it to the cost of goods and services.

Answer 17

he said tax income of people making over 250,000 a year. not small business. ok, now that i cleared that up what else can you use to sway votes from Obama?

Answer 18

Doing that will kill growth, why would anyone want to succeed just to be taxed upon hitting a dollar mark. You would have to jump your business from 250K to 400K to absorb the tax and see no loss.

Answer 19

If we want to have jobs in America and not overseas, they have to be able to make money to stay in business. More taxes if not the answer.

With McCain as president, he will bring jobs back to the US.

Answer 20

You tax the individuals not the businesses.

Answer 21

Barack Obama’s tax plan will help small businesses grow and will encourage job creation in America. He will directly cut taxes for small business and for firms that invest and create jobs in the United States, will relieve healthcare costs for all firms and will reward investments in innovation.



Barack Obama pro-business tax policies include:



-Eliminating Capital Gains Taxes for Entrepreneurs and Investors in Small Business. Barack Obama understands that small businesses are the engines of our economy, and he will eliminate all capital gains

taxes on investments in small and start up firms.



-Cutting Corporate Tax Rates for Firms that Create Jobs in America. Barack Obama will repeal tax breaks and loopholes that reward corporations that retain their earnings overseas, and will use those savings to lower corporate tax rates for companies that expand or start operations in the United States.



-Offering a Small Business Healthcare Tax Credit: To help small businesses compete in the global economy while still providing quality health insurance, Barack Obama will offer a new refundable 50

percent health tax credit on employee premiums paid by employers. His comprehensive healthcare plan will relieve health costs for all firms by bringing down national healthcare costs by $2,500 per family, annually.



-Making the R&D Tax Credit Permanent. Barack Obama will make the Research and Development tax credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multiyear

time frames.





You're wrong. Do some research and reading and you might be surprised!

Answer 22

it is important to remember that Obama's income is over 2,000,000/yr meaning that he's planning on raising his own taxes so it's hard to point a finger when one of the people that will be affected is himself.

Answer 23

want to be, but aren't.



why to republican shills expect the rest of us to care about the WEALTHIEST AMERICANS GIVING A LITTLE BACK to the nation and economy that they have clearly benefitted from?

Answer 24

i would love to make that much money but, you do realize that those who make that much money won't be paying more than they paid under Reagan?

Answer 25

this will effect all businesses



I own a business and if Obama is elected I will be foroced to cut jobs



I will start with the employees I know are voting for Obama