Tags: Obama | Tax | Plan | Businesses

Expert: Obama Tax Plan Will Hurt Small Businesses

Sunday, 15 Jul 2012 05:46 PM

David Park, chairman and co-founder of Job Creators Alliance, says President Barack Obama's propose tax plan will increase taxes on small-business owners — the very people who have been driving U.S. job creation while struggling to survive in a weakened economy.

“Small business owners are often unfairly grouped with the extremely affluent because of the way they file their taxes,” Park writes in US News.

“Due to their size, most small businesses file as sole proprietors or partnerships — in fact, approximately 85 percent of small businesses file income taxes as individuals.”

“This means that, while a small business owner's personal income may seem
large, the majority of the money is actually funneled directly back into the business.”

By targeting these individuals, Obama is not only increasing taxes for nearly half of America's small businesses, he is also making it harder for the middle class to be able to find the jobs they so desperately need, Park explains.

“This is simply bad policy,” says Park. “Small businesses create 64 percent of new jobs in this country and employ almost half of all American workers.”

“Raising taxes on them won't create a single job.”

Park says that though the president insists that the $250,000 ceiling will only affect the rich, the Joint Tax Committee estimates that the tax hike will affect over half of all net business income in 2013. And the nonpartisan Tax Policy Center sees an overwhelming 96 percent of middle class taxpayers paying an average of $1,800 a year as a result.

CNN reports that Obama signed a bill in 2010 to extend all of the Bush-era tax cuts until the end of 2012, citing the need for economic stimulus at he time.

He has since vowed he would not permit another extension of the lower tax rates for wealthy Americans.

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