Obama's Taxes Will Ruin Small Businesses

Tuesday, 06 Jul 2010 08:02 AM

By Wayne Allyn Root

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As a common-sense small businessman, I have a front row seat to a slow-motion economic Armageddon that will be written about, discussed and debated for decades to come.

Big shot economists don’t listen to guys like me. They scoff as I predict that small business is suffering a catastrophe — leading this nation towards levels of unemployment and economic crisis that will rival or surpass the Great Depression.

Just last week, the Bureau of Labor Statistics quietly reported that the labor force dropped by roughly 1 million people during just the last two months. If those numbers were added into the unemployment numbers, it would shock the American people.

I do not believe the tragedy that is unfolding is a mistake, coincidence, or due to incompetence. I believe my old college classmate, Barack Obama (class of ’83, Columbia University) is purposefully trying to destroy capitalism, by overwhelming the system, thereby creating a distraction giving him cover to redistribute America’s wealth to his voters (those who create no jobs, pay few taxes, depend on government handouts for survival, or work for government or unions).

As a bonus, he gets to bankrupt the groups that contribute virtually all the money to his political opposition.

Consider a few highlights of Obama’s destruction:
  • The biggest income tax increase in the history of America will take effect on Jan. 1, 2011. The new tax increase falls almost 100 percent on small business owners and high-income taxpayers (whose contributions happen to fund Obama’s political opposition). As a result, many more jobs will be lost and more businesses closed.
  • A dramatic 60 percent capital gains tax increase (from 15 percent to 23.8 percent effective rate, including new universal healthcare taxes) will accompany the big income tax increase above. More jobs will be lost, more businesses closed.
  • Taxes on dividends will increase from 15 percent to 39.6 percent, and then another 3.8 percent by 2013 for Obama’s new healthcare taxes. Stocks will be crushed and older Americans will be devastated (because they live off dividends, investments, and bank interest).
  • New taxes on income, investments, and even tanning bed users soon take effect to pay for Obamacare. Worse,18,000 new IRS agents will be hired to enforce these taxes (at a cost of billions annually in new government employee salaries, pensions, and benefits).
  • The pending cap and trade legislation threatens new taxes on anyone who owns a business, owns a home, owns an auto, or buys products manufactured or delivered through the use of energy.
  • The pending financial reform bill threatens onerous new rules, regulations, and taxes on banks and Wall Street. More jobs will be lost (and more banking and financial jobs sent overseas).
  • The pending new jobs bill threatens gigantic new taxes on every Sub Chapter S corporation in America. More jobs will be lost and more small businesses ruined.
  • The threat of a new national sales tax (VAT) on everything manufactured, bought and sold in America looms large. Fewer jobs, reduced consumer spending, more businesses closed forever.
  • Obama is pushing for the reduction or elimination of tax deductions (such as mortgage or charitable contributions) for high income earners (mostly small business owners).
  • The threat of bans or restrictions on offshore oil drilling being put permanently into place. More jobs lost (and more jobs sent overseas where drilling is welcomed).
  • All signs indicate that Obama will soon propose to take the income cap off FICA (Social Security) taxes. If this were to happen, a successful small business owner could see FICA taxes alone go from an already bloated and burdensome $15,000 per year to an unimaginable $150,000 (or more). This will wipe out small business and cause people who Obama deems rich to lose their homes and businesses.
  • A new IRS law (with the passage of Obamacare) requires business owners to file thousands of new forms each year documenting virtually every expenditure made by their business. As a result of this blizzard of new paperwork, small business faces ruin.
  • Taxes on the state and local level, sales taxes, property taxes and new taxes disguised as “user fees” are already at levels that taxpayers and small businesses can no longer afford to pay.
  • Obama refuses to consider lowering the second-highest corporate tax rate (40 percent) in the industrialized world. As a result, more businesses will choose to leave the U.S. (and more jobs will be sent overseas).

Obama has launched an unprecedented, overwhelming, death-by-tax assault on the groups that fund fiscally conservative causes and candidates:  taxpayers and business owners.

Obama wants to turn Americans into dependent serfs begging for government to save them, clothe them, and feed them. Eventually he will run out of taxpayers to rob, thereby bankrupting his own programs and bringing down his government.

God help America.

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