Quote:
dreamdeferred said
Right......yeah I've heard those talking points.....here are the facts.
Obama vs McCain on Small Business
Obama- Increase the minimum wage and index the rate to inflation so that it goes up every year
- Wants to eliminate all capital gains taxes for new business start-ups
- Give a $500 credit to business owners to offset the self-employment tax
- Proposes making the R&D tax credit system permanent
- Give a 50% refundable credit for employee health insurance premiums that are paid by the employer
- Suggests that entrepreneurship in rural America is critical - his solution? Create a small-business and microenterprise initiative where investors can get a 20 percent tax credit for $50,000 investments in small businesses
- Require all employers to automatically enroll workers in 401(k)s or IRAs
- Keep the estate tax rate at 45% and increase the exemption limit to $3.5 million
- Provide Tax Relief for Small Businesses and Start Up Companies: Barack Obama will eliminate all capital gains taxes on start-up and small businesses to encourage innovation and job creation.” (omitted from original source.....added it)
McCain- Lower the corporate tax rate from 35% to 25%
- Wants to reduce the chances of taxes going up by requiring a three-fifths majority vote in Congress necessary to raise taxes
- Allow small business owners to expense new equipment and technology purchases in their first year
- Proposes creating a permanent ban on Internet taxes (states like New York and Texas are trying to push forward an Internet sales tax initiative)
- Make the R&D tax credit system permanent, but change the formula
- Wants to ban cellphone taxes (federal tax code states business people can only write off the portion of their cell phone bill that applies to business and not personal use)
- Create a tax credit system to allow people to buy personal health insurance that they can take with them from job to job
- Reduce the estate tax rate to 15% and increase the exemption limit to $5-10 million
source: YoungEntrepreneur.com Blog » Obama or McCain - Who is More Small Business Friendly?
McCain's small business bunk
FactCheck.org: McCain's Small-Business Bunk
Obama's plan for small business
http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf
The health care tax credit alone is a game changer.
McCain's plan will definitely be good for corporations.....as it reduces their tax rates by 10%. It's also thoroughly unrealistic as his vision for the economy doesn't include any way too pay for the tax cuts he proposes. Alan Greenspan recently commented on exactly this.....the tax plan McCain proposes coupled with the massive spending he intends to pursue is a recipe for economic disaster (well...more like a continuation of an economic disaster ...as Republicans are largely responsible for putting us here.)
Hey.....I understand that you have very real concerns as a small business owner and the reality is that your taxes may go up but where did you get the 10% figure you mentioned earlier?
EDIT: Never mind.....I thought you were talking about the 250-600k bracket.......to reiterate......the vast majority of small business owners are actually in this category and will see a 0% increase in tax rates.....those in the 600k-2million bracket will see an increase of roughly 8-11%. |
In 2006 (the latest year available), $706 billion of such income was reported to the Internal Revenue Service. Of this, about half was reported by households in the top marginal income tax rate. Interestingly, two-thirds of this income was reported by households making $250,000 per year or more — the very same households that Obama wants to increase taxes on.
The Obama campaign maintains that the number of small-business owners is what’s important. Economists know what matters is the tax rate that’s applied to the bulk of small-business income. Make no mistake about it: Obama’s plan to raise taxes on households making more than $250,000 will raise taxes on most small-business profits in America.
What type of tax rate are we talking about? Currently, S corporations face a top tax rate of 35 percent, while sole proprietors and general partners face a tax rate of 37.9 percent (since they’re responsible for paying both income tax and the Medicare component of the payroll tax).
Under Obama’s plan to let the scheduled 2011 tax rate hikes occur, and his plan to raise the self-employment tax on those making more than $250,000, the S corporation rate would rise from 35 percent to 39.6 percent. The sole proprietor and partner rate would rise from 37.9 percent all the way up to a staggering 50.3 percent. Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century.
I haved checked into this quite a bit. Small businesses will be hit hard by Obama's Plan. I am a sole proprietor and I can tell you I am already so taxed it is insane. I live in New Jersey and between Obamas Plan and NJ 's highest taxes in the country, I will be paying close to 65% of my income to taxes. I am not kidding either. I am not in the $250,000 bracket yet either.