FOR YOU SMALL BUSINESSES 

Tax increases are absolutely in the future for you small business owners out there. The debate is not about raising taxes, it is about raising taxes on the rich. By rich, I mean anyone earning more than $200,000 on your personal income tax form. But guess what? According to the IRS, most small business profits pay taxes in households making more than $200,000 per year. But you people are supposed to be the engine of our economy, the job creators, the people who will turn the tide for this economy, right? That's the line of BS that the White House is feeding you. Yet they turn around and raise your taxes? That's a pretty bazaar economic policy. But then again, this White House is steered by the economic policy of redistributing the wealth and creating centrally-planned government economy. Somehow, those two things don't seem to fit the bill for your small business owners.

Americans for Tax Reform has some statistics on what you can expect from Obama and the Democrats and their precious tax increases on the evil rich.

• All small businesses. There were 30 million tax returns reporting small business income in 2008. On net (profits reduced by losses), these owners reported business profits of $981 billion. A large chunk of this net profit--$488 billion--faced taxation in households making more than $200,000 per year. A majority of small business profits will face a tax rate hike under the Obama-Pelosi-Reid plan.
   
• Sole proprietors. There were 22 million tax returns reporting sole proprietor income in 2008. On net (profits reduced by losses), these owners reported business profits of $264 billion. A large chunk of this net profit--$90 billion--faced taxation in households making more than $200,000 per year. 34 percent of sole proprietor profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.
   
• S-corporations and partnerships. There were 8 million partners and S-corporation shareholders in 2008. On net (profits reduced by losses), these owners reported business profits of $717 billion. A majority of this profit--$398 billion--faced taxation in households making more than $200,000 per year. 55 percent of S-corporation and partnership profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan.

How is all this going to affect your hiring? Doug Holtz-Eakin, a former Congressional Budget Office director predicts that tax increases on the rich could reduce small business hiring by 18%. This might be OK with the Obama crowd. The more people without work, the more people you have dependent on government ... and THAT is the grand Obama scheme.