Throughout the debates John McCain has been claiming Obama's tax increase would hinder small businesses. However, according to CNNmoney McCain is using too narrow a definition for small business and does not have his numbers right.
Out of 34.7 million small businesses only 479,000 would have an increase. This number is less than two percent. Also, the term small business is a very broad term. McCain and Obama file as a business because of their book royalties, but neither own a business.
Only the upper two brackets would face a tax increase. Small business owners who bring in an income above 150,000 dollars as a single filer would pay a little less than 2,000 dollars more each year. The bracket would move from 33% to 35%.
Therefore, Joe the Plumber can start his business and sleep easy at night about taxes.
1 comment:
Joe the Plumber should first worry about getting his plumbing license if he wants to actually own his business. According to several articles I've read so far, the man isn't even licensed to be a plumber. Also, McCain's real problem with Obama's plan is that it redistributes the wealth from the upper class to the middle class, and that makes any conservative uncomfortable
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