Labor & Economy
Ending Bush Tax Cuts Would Affect Few Small Businesses
Republicans pride themselves of being the champions of small business owners. But it’s helpful to clarify what actually is their definition of a small business.
The Center on Budget and Policy Priorities (CBPP) released a report that shows only 2.5 percent of small business owners would be affected by allowing the Bush tax cuts to expire on the wealthiest taxpayers (top two marginal tax rates).
CBPP writes:
“The claims that allowing the Bush tax cuts for high-income people to expire would seriously harm small businesses rest on an exceedingly broad, and misleading, definition of ‘small business.’ The definition is so broad, in fact, that under it, both President Obama and Governor Romney would count as small business owners—as would 237 of the nation’s 400 wealthiest people.”
Did you catch that? The definition is so broad 237 of the nation’s 400 wealthiest people are considered small business owners.
CBPP explains this often-cited claim that allowing the Bush tax cuts to expire on upper income earners is so exaggerated it includes:
any taxpayer who receives any income from any “pass-through” entity (that is, an entity that does not pay corporate income tax on its profits but instead passes them through to its owners, who pay tax at the individual rates).
It is interesting to note that small business growth during the Clinton rates was twice as high as under the Bush-era tax rates.
Read the entire report here.
(This post first appeared on the AFL-CIO’s Web site.)
-
California UncoveredApril 9, 2024
700,000 Undocumented Californians Recently Became Eligible for Medi-Cal. Many May Be Afraid to Sign Up.
-
Feet to the FireApril 22, 2024
Regional U.S. Banks Sharply Expand Lending to Oil and Gas Projects
-
Class WarMarch 26, 2024
‘They Don’t Want to Teach Black History’
-
Latest NewsApril 10, 2024
The Transatlantic Battle to Stop Methane Gas Exports From South Texas
-
Latest NewsApril 23, 2024
A Whole-Person Approach to Combating Homelessness
-
Latest NewsMarch 27, 2024
Street Artists Say Graffiti on Abandoned L.A. High-Rises Is Disruptive, Divisive Art
-
State of InequalityApril 11, 2024
Dispelling the Stereotypes About California’s Low-Wage Workers
-
State of InequalityMarch 28, 2024
Los Angeles Hotel Workers Could Use the 2028 Olympics to Their Advantage