They've spent nearly $8 trillion since 2007, including nearly $2 trillion on economic stimulus programs and an equal amount for the Troubled Asset Relief Program and similar bailouts. They've effectively nationalized Fortune 500 corporations, taken over the health care sector, and set the regulatory stage for more bailouts and takeovers, but the needle is still stuck. Worse, recovery isn't likely for many months ahead because those same politicians are planning more of the same failing policies.
Consider that entrepreneurial small businesses are the job-creation machine of a free-enterprise economy. But these firms are about to get smacked with significant tax rate increases that will keep most of them struggling just to survive. President Obama, Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi will let the Bush tax cuts of 2001 and 2003 expire as scheduled Jan. 1, 2011. The current 33 percent tax rate on individuals will go to 36 percent, and the current 35 percent rate will increase to 39.5 percent. Those are individual rates, but the majority of small-business profits are taxed as income to individuals.
According to Internal Revenue Service data, 30 million tax returns reporting small-business income were filed in 2008, showing net business profits of $631 billion. Americans for Tax Reform pointed out Friday that "large chunk of this net profit -$457 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."
So, those millions of small-businesses will soon have even less money to invest in expanding existing product lines or services, as well as job-creating new ventures.
Read more at the Washington Examiner
8 comments:
We will never recover , socialism is here and will be here until we
have a war within our country . The muslims have broken the U.S..Religion has caused more wars than any other reason .
i think the old 'wife shopping and saving' joke applies here. it roughly goes like this:
woman goes shopping. store after store, she is writing check after check. after coming come, she brags to her husband how she didnt spend any money today. husband checks the receipts, passes out, and awakens later and asks her, "how the hell do you think you havent spent any money?!"
the woman replies, "when i was at macys, i save 15% on my purchases. then at bloomingdales, i saved another 25%. i got to save 40% at a clearance sale in sears. finally, i saved 20%at jcpennys. so, altogether today, i saved us 100%!"
only in this case, obama has saved so much, he thinks were are gaining money...
there must be a journalist on crack......blame your lifes failures on Obama.uuhh!
We have a 14 trillion dollar annual economy. The stimulus package was 800 billion. That is 5.7% of the annual economy. If unemployment is 9.5%, a second 800 billion should be spent at least. It is possible that much should be spent each year for several years. The alternative is continued high unemployment due to slack demand caused by uncertainty and increased (6.2%) savings rate.
More fearmongering BS. Slack demand and consumer spending means there is NO NEED TO HIRE MORE WORKERS. Not to mention the vast majority of small businesses are not facing tax hikes under the plans being presented by Obama since Day 1. Not trying to be a cheerleader but atleast get the story straight.
Not facing tax hikes? I thought the expiration of the Bush tax cuts for individuals making 200,000 applied to small businesses that are taxed as individuals?
The problem with doing nothing is possible deflation. As the costs of goods and services deflates, consumers hold on to their money waiting for less expensive products tomorrow. This causes more unemployment in a self reinforcing spiral.
Doing nothing is what Hoover did for the first 3 years of the Great Depression. The 25% unemployment that resulted caused the public to lose faith in capitalism. It took the New Deal and WWII to restore it.
Bill the vast majority of small business owners still do NOT fall into the 200,000+ category
Hussien never was about recovery. He was put in place to deliver the final death blow to America and he has done it right under our noses. It is unbelievable that there are still people who are so ignorant that they haven't figured it out yet. They won't see it until the government can't take care of them anymore and the free ride is over. It's coming real soon and it's too late to stop it.
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