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View Full Version : Small Business Tax Increases



dan_bgblue
10-02-2012, 08:47 PM
http://www.foxnews.com/opinion/2012/10/02/top-five-worst-obama-tax-hikes-on-small-business/

CitizenBBN
10-02-2012, 09:16 PM
Sums it up pretty well. the "you didn't build that" goes hand in hand with his specific policies to show a contempt for those who build successful businesses.

Already saddled with the toughest tax burden in the nation, he wants more. Small businesses often can't afford the armies of lawyers and accountants that help avoid those taxes, don't have the credit lines that allow them to absorb a bad year here and there and still pay taxes on gross numbers, and don't have the existing overhead of employees or accountants/lawyers to even keep up with the filing requirements, that are never ending.

On my desk right now I have to contact Ky Revenue about my sales tax (going from monthly to annual thank goodness, have been having to do it every month), a renewal filing for my LLC, do a pile of accounting needed for taxes (like mileage deductions, breaking out receipts between straight expenses and stuff that has to be capitalized and depreciated), a bunch more.

Those are taxes. Things I have allocate time for that is unique to small business. As the article says most small businesses are effectively taxed at the highest tax bracket, so their rate will go up and they don't have the avoidance ability of the real wealthy.

The estate tax exemption went up to $10 mil to keep businesses and farms from having to be sold to pay the taxes, and he wants to take it to a level it hasn't been for decades. It sounds great that if you have millions you shouldn't complain, but what if those "millions" are tied up in your business, the building it sits in, and your house? What if it's the value of your farm and all the equipment and livestock? You don't have to be very big to be in trouble the way things are accounted for for tax purposes.

That's the thing with Obama, and this class division in general. It sounds good, it's hard to work up sympathy for the "rich", and it's easy to sell people that they deserve and need more, but it's just not the truth. You're taxing your neighbors and friends, not the fat cats in Palm Beach. They have their tax shelters and living trusts and offshore money and they don't have salary income.

Just like capital gains. Sounds good to tax the rich investors, but the vast majority of cap gains taxes are paid by mutual and other investment funds that are investing the nation's pensions and retirement funds. So most of the cap gains taxes come from the middle class, not the rich. It sounds good, but you're just voting yourself a tax increase and don't even know it, and voting one for your friends, family and neighbors too.

Oh, dont' forget all the other regulations I have to deal with beyond taxes. Health care was a big pain when I had employees, I even got signs from the Labor Relations Board I was supposed to post in my business explaining employee rights. Even my employees thought it was absurd.

The video of Obama on the other thread goes right to this. Division, hate, suspicion, and outright misrepresentations and lies about who he is telling you to resent and even hate. Telling some they are being taken advantage of by others, then putting all the load on the others.

I know a lot of small business people considering throwing in the towel and just getting regular jobs. Few small business owners get to work 9-5 and go home not worrying about work. We do what we do b/c we a) are willing to assume the risk to try and move up the ladder more than one might with a "regular" job, and b) we enjoy what we choose to do.

Going home on time and getting weekends off sounds better all the time.

CitizenBBN
10-02-2012, 09:21 PM
Oh, and what if those millions you made and left in an estate you made yourself, with your hard work so you could leave your family financially secure? Oh yeah, "you didn't build that". Your family can keep some of it, and the government will decide how much they deserve, then will take the rest and divide it up as they see fit.

Forget that you took all the risks, put in the hours, saved your money and were willing to forgo immediate gratification to build an estate for your family and heirs. Forget that you saved your money and managed your farm wisely while others went to cattle shows and bought lavish equipment and built fancy homes.

FWIW I've seen that up close and personal. one side of my family has saved their money, worked hard on their farms, bought land intelligently and managed it well, out there every day all day. The other bought wide screen TVs and brand new trucks, bought expensive cattle just to show, bought land for ego rather than what it would make, and have gone bankrupt multiple times.

Yet in the end my hard working side will be taxed to pay for the welfare benefits of the other side. I know them both and love them both as family, but I know who deserves what and they deserve exactly what they got, both sides. I guarantee I'm not the only person in the country with that tale to tell.

Forgot to mention. the bankrupt side started with FAR nicer farm land than the other. One started with good flat land, large farm, good water, a good dairy operation. The other started with a hill farm with no livestock. Of course they fixed their trucks or drove them with rust spots while the other bought brand new 4x4s with the trimmings.