Obama the Job Killer

116 million American jobs at risk under the punitive Barack Obama tax plan:

Five Things You Might Not Know About Obama’s Small Business Tax Hikes

***Record Tax Hike on Small Businesses Will Kill Last Job-Creating Sector***

WASHINGTON, DC— Americans for Tax Reform today released the following “top five” facts related to the Obama tax hike on small businesses:

1. Two-thirds of small business profits are earned in households making more than $250,000 per year—the very households Obama is shouting from the rooftops that he will raise taxes on (Source: IRS Statistics of Income Bulletin*). Small business profits are used to create jobs and invest in America. This is the answer to the Obama campaign’s irrelevant claim that the number of small businesses affected will be small—the fact is that the bulk of profits will face a tax hike.

2. Small businesses pay income taxes at the household level. This means that the Obama plan to raise tax rates is a direct tax hike on small businesses—sole proprietorships, partnerships, S-corporations, and family farms

3. The tax rate on the lion’s share of small business income could reach 54.9 percent under a President Obama (the individual top rate will climb from 35 percent to 39.6 percent and the Social Security/Medicare tax rate could climb from 2.9 percent to 15.3 percent. Put those together, and you get 54.9 percent) (Source: www.barackobama.com)

4. This 54.9 percent tax rate would be the highest since the Carter Administration, when America suffered through double-digit inflation and unemployment (Source: Congressional Budget Office)

5. America’s 26 million small businesses employers give a paycheck to 116 million employees (Source: Census Bureau). When small business taxes go up, millions of these employees will be at risk of being laid off.

“Obama’s tax increases will only affect you if you have a 401(k), have any savings, buy things from small businesses or are looking for a job,” said Grover Norquist, president of Americans for Tax Reform. “If you fall into one of these categories, his policies will screw you. Otherwise, you’re fine.”

* “Small business profits” is equal to the net profits less net losses of sole proprietors, S-corporation shareholders, and partners. According to the IRS, two-thirds of these small business profits are earned in households with adjusted gross income (AGI) equal to or greater than $200,000. In 2006, $473 billion of the $706 billion (two-thirds) of small business profits was earned in households Obama has said he would raise tax rates on.

UPDATE: Fact-checking the debate: Americans for Tax Reform released the following post-debate fact check:

Obama claims that the 95% of taxpayers making less than $200,000 will get a tax cut under his plan. This is wrong:

· According to Tax Foundation, 33% of households don’t have an income tax liability: http://taxfoundation.org/research/show/23631.html

· Obama “tax cuts” are mostly welfare spending: http://www.cbsnews.com/stories/2008/10/15/eveningnews/realitycheck/main4524944.shtml

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There are 28 million small business owners in the U.S. Of these, about 3 million make $200,000 per year or more. Two-thirds of small business profits are earned by these business owners. Small businesses pay their business taxes on their personal returns, so increasing tax rates on these 3 million business owners increases taxes on two-thirds of small business profits: http://www.irs.gov/pub/irs-soi/06in14ar.xls

Small businesses (companies with <100 href="http://www.census.gov/epcd/susb/latest/us/US--.HTM" target="_blank">http://www.census.gov/epcd/susb/latest/us/US--.HTM

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Obama actually did vote twice for budget resolutions that call for increasing the tax on capital gains, dividends, small businesses, workers, families, and even death. In fact, look it up right here:

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00172

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00142

· Increases top rate from 35% to 39.6%

· Increases lowest rate from 10% to 15%

· Brings back the marriage penalty

· Brings back a 55% death tax

· Increases the capital gains tax from 15% to 20%

· Increases the dividends tax from 15% to 39.6%

· Cuts the child tax credit in half from $1000 to $500

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Obama didn’t vote on the Peru FTA. He could tell both sides he was with them: http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00413

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The federal employee health benefit plan’s most popular plan costs $13,422 in 2009 (Blue Cross Blue Shield Standard family): http://www.opm.gov/insure/health/09rates/nonpostalffs2009.pdf

For any families making less than $250,000 per year or so, the McCain health credit will be a net tax cut assuming average health premium costs. For lower income people, it will be a sizeable tax cut: http://www.irs.gov/formspubs/article/0,,id=164272,00.html

How much will the Obama tax hike shrink your 401(k)? www.atr.org.