It "jives". The rich, by your and Obama's definition, do much to help the economy. Most middle class individuals work in small business. The owners of the businesses are the one you're targeting. Go ahead - tax em. They'll pass costs along to consumers, lay off employees, and whatever else they must do to keep their business going.
What we can't understand is how YOU think it's fair that 49% of the citizens of this country pay no income tax, yet benefit from Government?
1. Very few small business owners make anywhere near $250K in personal income. I doubt that you could even find 5% of them who make more than $150K a year, although their business revenue may be much higher.
2. If you would look, you would see that raising the taxes on the truly rich would affect only those who make more than $250K. That's very few small business owners, probably not even 5% of them.
3. You are right that small businesses do employ more people than any other sector, but you would surprise a lot of people if you could show that even 5% of those small business owners have a personal income high enough to be affected by Obama's tax the wealthy budget balancing proposal.
In fact, let's look at the numbers right now. These are based on the number of people reporting small business income on their tax returns.
Tax bracket -- Income range -- Percent of those with small business income
0% -- $0 -- 24.6%
10% -- $0 : $16,700 -- 14.0%
15% -- $16,700 : $67,900 -- 33.0%
25% -- $67,900 : $137,050 -- 20.0%
28% -- $137,050 : $208,850 -- 5.8%
33% -- $208,850 : $372,950 -- 0.4%
35% -- over $372,950 -- 0.9%
The remaining 1.3% is classified as "non-filers" in the report from the Congressional Research service that I read.
Of course the $250K is after the business owners wrote off all sorts of expenses, cars, all kinds of gilded insurances, SEP-IRA, Keoughs, entertainment bills, home office expenses, travels, business machines, family payrolls ... favorite charities.
Gee, the small business owners must be in hell during the hyper growth years soon after WW II and recently during the Clinton years. In Contrast, take a look at the low tax era for the rich since 2001.Stark indeed.
It jives because no one believes these taxes are aimed at the 'very rich'.. A married couple making 250K is now very rich? A pair of professionals that maybe spent an extra 2-8 years of college, lost those earning years, are now the evil rich? Who do we expect to step up and do that work, if not for any benefit? Where is the payback? Why do we as a country demonize our successful like this?
Maybe because these leaders don't have a better plan, certainly this tax increase won't stop the bleeding.