The Homa Files

Ken’s Take: During the campaign, Candidate Obama promised repeatedly: “not one dime of new taxes if you make under $250,000” and “for the top brackets, no higher than under President Clinton”.  The latter will fall by the wayside if the Rangel proposal is enacted.  Think the former is far behind ?

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Excerpted from WSJ, The Small Business Surtax, July 14, 2009

Every detail isn’t known, but late last week Ways and Means Chairman Charlie Rangel disclosed that his draft bill would impose a “surtax” on individuals with adjusted gross income of more than $280,000 a year.

This would hit job creators especially hard because more than six of every 10 who earn that much are small business owners, operators or investors, according to a 2007 Treasury study.

That study also found that almost half of the income taxed at this highest rate is small business income from the more than 500,000 sole proprietorships and subchapter S corporations whose owners pay the individual rate.

In addition, many more smaller business owners with lower profits would be hit by the Rangel plan’s payroll tax surcharge. That surcharge would apply to all firms with 25 or more workers that don’t offer health insurance to their employees, and it would amount to an astonishing eight percentage point fee above the current 15% payroll levy.

Full article:
http://online.wsj.com/article/SB124753106668435899.html

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This entry was posted on July 14, 2009 at 7:59 am and is filed under Obama Administration, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.