How Will Raising Taxes on Small Businesses Create Jobs?
Here’s one question President Obama should have to answer at his press conference this morning: how will raising taxes on small businesses create new jobs?
The unemployment rate has been higher than eight percent for 41 months – the longest streak since the Great Depression – and well above what was promised by the ‘stimulus’ spending binge. No wonder a new survey by The Hill found a majority of Americans believe President Obama has made things worse.
Unfortunately, the plan the president will tout (again) won’t make things better. Instead, it means:
- Roughly 940,000 small businesses will be hit by a big tax hike. According to the National Federation of Independent Business (NFIB), “75 percent of small businesses are organized as pass-through entities meaning they pay taxes on their business income at the individual rate.” The Joint Committee on Taxation (JCT) estimates the tax hike would hit about 940,000 small businesses (see more here from ABC News).
- Half of all small business income would face higher taxes. According to Bloomberg News, analysis by JCT also shows President Obama’s plan for massive tax hikes “would mean higher taxes on 53 percent of business income reported on individual returns.”
- More than a quarter of American workers’ jobs are at risk. “According to U.S. Census data,” says NFIB, small businesses “employ more than 25 percent of the total workforce.” Raising taxes on small businesses threatens these jobs – the last thing we need to do in a weak economy.
“How will these small business tax hikes create jobs?” asked Speaker John Boehner this morning. We’re wondering if President Obama has an answer.
The House, meanwhile, is moving forward with a pro-growth jobs agenda focused on removing government barriers to job creation. See upcoming votes here and visit jobs.GOP.gov for more information on the GOP jobs plan.