The Homa Files

This week, a series of ‘angles’ on the debate to kill or keep the Bush Tax Cuts …

Again, I’m for extending all of the Bush Tax Cuts, and I don’t like helping the Dems with their messaging.  But …

The GOP’s constant sound bite is that that letting any of the Bush Tax Cuts expire would hurt investors and small businesses.

The Dems say that only 3% of all small businesses report Schedule C business income on their 1040s.

The GOP counters that the 3% accounts for 43% all small business income.

 The Tax Policy Center estimates that higher business taxes would affect 725,000 returns with about $400 billion of business income. Some of these are partnerships of doctors, lawyers and accountants. Others are contractors, restaurant owners, florists and plumbers.

http://www.realclearpolitics.com/articles/2010/09/20/the_economic_blame_game_107220.html

Score the point for the GOP.

So, why don’t the Obamatrons just cap Schedule C  income at, say, 25%.

That would take that issue off the table.

And, before you say ‘would be too complicated’ … remember that typical 1040s treat ordinary income, dividends, and capital gains at different rates already.

This entry was posted on September 23, 2010 at 6:52 am and is filed under 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.