Friday, December 09, 2011

"Small' Businesses Owners' INCOME TAX Rates and Job "Creation"

Finally somebody is getting at details of the relationship between small business taxes and job creation. In a piece on NPR this morning, they described their attempt to validate the claim that increasing the marginal tax rate on small business owners who earn in excess of $1 million would have a significantly adverse impact on economic growth/job creation. NPR contacted several Republican senate offices to get the names of small business people to to interview about this topic. The Senators could not provide any names of small businesses for the interview. NPR also contacted business organizations who made the same claim and got the same results ... no interviews. Then NPR they put out a request on the Internet for people willing to be interviewed. While the interviews were only anecdotal, each interviewee said that their marginal tax rate was not affecting they're hiring decisions. NPR disclosed that these respondents have voted Democrat in the past, but apparently no Republican business people responded. Unfortunately NPR's effort was weak, because they didn't indicate whether the respondents actually earned over $1 million, didn't indicate how few small business owners, say sole proprietors, earn over $1 million, and they didn't give an example of how much additional taxes would be imposed on someone earning, say, $1.25 million. But it's a start. Political views and/or other arguments against tax increases aside, facts are better than false propaganda.

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