An editorial in today’s Wall Street Journal builds on the Tax Foundation report we cited yesterday about the effect of a income tax “surtax” to pay for health care. In “The Small Business Surtax,” the Journal notes the fact that the majority small businesses — including manufacturers — file their taxes as individuals, so Rep. Charlie Rangel’s proposed tax increase would hit jobs creators the hardest.
Another implication of the Rangel plan is that America’s successful small businesses would pay higher tax rates than the Fortune 500, and for that matter than most companies around the world. The corporate federal-state tax rate applied to General Electric and Google is about 39% in the U.S., and the business tax rate is about 25% in the OECD countries. So the U.S. would have close to the most punitive taxes on small business income anywhere on the globe…[snip]
A new study by the Kaufman Foundation finds that small business entrepreneurs have led America out of its last seven post-World War II recessions. They also generate about two of every three new jobs during a recovery. The more the Obama Democrats reveal of their policies, the more it’s clear that they prize income redistribution above all else, including job creation and economic growth.
The House Democrats are expected to release their health care legislative package today. Will jobs creation have any place in their plan?
Latest posts by Carter Wood (see all)
- Farewell from a Blogger - May 25, 2011
- Activist Ignore Evidence to Back Shakedown Suit Against Chevron - May 25, 2011
- More than a Lawsuit: A Circle of Political Pressure Against Chevron - May 25, 2011