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FMROMMEL said
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.
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I've never heard about these plans to raise the sole proprietor and partner tax rate by 12% across the board.....lemme look into that....thanks for the info.
Meanwhile consider this.......all this esoteric talk about taxes aside, McCain has articulated an economic vision for the country the doesn't seem to make a whole lot of sense. No attention to creating and capitalizing on a Green economy, continuation of massive spending (10billion+ a month in Iraq alone), even more tax cuts for the oil industry. Crazy stuff.
At the end of the day any we slice it.....I can't imagine how McCain is a serious contender given the catastrophic failure of the Republicans over the last two terms. And let's face it, "maverick" or not, McCain's philosophy is essentially indistinguishable from Bush's.