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This entry was posted on Monday, October 20th, 2008 at 10:27 am and is filed under Small Business, Taxes. You can leave a response, or trackback from your own site.
Much of the news on the TV talk shows lately has been about "Joe the Plumber" and former Secretary of State Colin Powell's endorsement of Sen. Obama for president. Gen. Powell's sentiments and those of 7 other former Secretaries of State, all of whom endorsed Sen. McCain, is politics, and something for the political arena, not a think tank blog post. I'm more focused on the implications of the Joe the Plumber "phenomenon" on public policy. Let others decide how much weight to give that politically. Fox News contributor Bob Beckel made an interesting claim last week. He said that "there are 17 million small businesses out there, and they can afford to pay more taxes to help others." It seems that Joe the Plumber, and an increasing number of small business owners, disagree with Beckel. The correct number of small businesses, according to the Small Business Administration is 26.8 million, but the bigger issue is taxation of small business owners. Joe the Plumber and his allies are saying they want to pay fewer taxes so they can provide more jobs and better health care and other benefits for their employees. So the question seems to be, why can't Joe the Plumber and other American small business owners provide benefits rather than the government? Who's better suited to make those decisions? You tell me….
October 20th, 2008 at 1:49 pm
You’re so right, Terry. Higher taxes are just what we DON’T need now—or ever, for that matter!
October 20th, 2008 at 2:07 pm
Joe The plumber did a great disservice to many legitimate business owners. The Minority Trade Association I head wishes that our members had a $250K per year problem. The truth of the matter is the overwhelming majority of our firms will do a lot less than $250K of taxable income. Only about 3% of our firms will have that problem/
Those who do, proudly accept the fact that making “good money” is good. We don’t mind paying taxes, as we make good money. This is no invitation to capriciously raise taxes. But, members of The National Association of Small Disadvantaged Businesses are proud to help the country with expenses that are justified.
That is the least we can do for a country that has blessed us to be a part of the solution rather than part of the problem. We wish there were more of us, and less “wolf ticket” sellers like Joe The Plumber”.
By the way, is Joe an “employer” (business owner), or an “employee”? He sounds like he owns a job, rather than a business.
October 20th, 2008 at 2:17 pm
According to an analysis performed by former SBA Office of Advocacy Chief Counsel Jere Glover:
“Only 3.5 million businesses (12.8%) of all businesses have receipts of over $250,000. Since taxes are paid on income and not receipts, it is necessary to break down the firms by income as well. In general, firms with less than $2.5 million have income of under $250,000.
The average income level for firms with receipts of over $250,000 shows that only 1% or 300,000 of these larger business owners have an annual income of over $250,000 and will likely not get a tax cut under the Obama plan.”
All things considered, the vast vast majority of the nation’s small businesses need not worry about a tax hike under the Obama plan.
October 20th, 2008 at 2:52 pm
As owner of Dossin Business Solutions, Inc. (dossin.com), my objections are not so much the amount of tax as it is the unfairness of the taxes, the complexity of the taxes, and the use of the taxes to suppress the creativity and productivity of our people. Unshackle the economy with simpler, fairer taxes and simpler, fairer social benefits, and see what the wonderful people of the United States can do!
For our ideas on how to fix taxes and social benefits, see ComingTogether.info.
Thanks for your work,
Steve
October 20th, 2008 at 3:37 pm
They (small businesses) can, but for those who cannot or will not there will be a safety net to catch everyone . . . which will lower cost for everyone. I would love this not only for my employees, but my whole community.
October 20th, 2008 at 5:30 pm
I agree with Steve Dossin. As another small business owner with 21 employees that I pay 100% of benefits for - including family healthcare - I resent being told what I have to do. I am also tired of those that assume because our revenue is in the millions - that I make that much money. Well guess again.
I worked two jobs when I started this company, try to treat people like I would want treated - but tax me more and yes…why would I bother growing? BTW, last time I checked - most of the small businesses made more profit (read that - paid more taxes) than the Enrons of the world….
I feel like I am living “Atlas Shrugged”.
October 20th, 2008 at 6:22 pm
Small business owners DON’T have the money to help anyone out…just paying for our health insurance premiums is insane…as a nation, we must take steps to shore up and support our small business owners during the economic crisis…or we risk losing many of them who do not have the cash flow to meet the demands.
October 21st, 2008 at 8:07 am
For the federal government to further inject itself into small business is WRONG. Less government is best government.
I always thought America stood for free enterprise until recently. It amazes me that our leaders and future leaders have come to appreciate socialism.
Ronald Reagan once said something like this, ‘entrepreneurs are the lifeblood of America.’
His comments were right on target. If America is going to rise up out of this current mess, it will be done by using the wisdom of entrepreneurs, not government officials.
October 21st, 2008 at 9:36 am
Thanks to all who responded to this topic. I love the fact that we can agree to disagree. That is America and it is our foundation. Small businesses are critical to the economic growth of this nation. Lending your voice to this discussion is vitally important.
October 26th, 2008 at 1:00 pm
I'm A "SMALL" business owner. I started about 1year ago, struggling to get the business of the ground, because, I'm trying to put people to work. I don't believe that I need to go broke, before I even get started, much less have a president and a adminstration to give my money away. If that isn't welfare, I don't know what else to call it. If we end up with this kind of adminstration, we are going to have people in line, having babies, expecting for the hard working people to take care of,and those that will fine any excuse, not find work, or even try to look.
October 27th, 2008 at 11:24 am
A very large portion of small businesses are S Corporations that do not pay tax. The taxable income passes through to its shareholders, who pay tax on this income by reporting it on their form 1040. If Obama does not plan to raise taxes on what he considers middle class, how will raising corporate tax rates help him increase revenue for all his spending programs? Another example of using “just words” to mislead.