President’s Adviser Affirms Plans to Raise Taxes on Small Business

By November 15, 2010Small Business, Taxation

Two versions of the same story …

Bloomberg, “Obama Rules Out Permanent Tax-Cut Extension for Top Earners, Axelrod Says“:

President Barack Obama has ruled out a permanent extension of tax cuts for the richest Americans while seeking to extend breaks for the U.S. middle class, a top administration adviser said.

“The bottom line is he wants to sit down and talk about this,” senior White House adviser David Axelrod said today on NBC’s “Meet the Press” program. “There’s no bend on permanent extension of tax cuts for the wealthiest Americans.”…

“‘The president still believes we have to move forward with these tax cuts for the middle class,” Axelrod said. “But we can’t afford to borrow another $700 billion to pay for tax cuts for millionaires and billionaires.”

Shopfloor.org’s version, “Obama Sticks By Plan to Raise Taxes on Small Business”:

President Barack Obama will continue to push for higher taxes on small businesses and manufacturers while seeking to extend breaks for the U.S. middle class, a top administration adviser said.

“The bottom lime is he wants to sit down and talk about this,” senior White House adviser David Axelrod said today on NBC’s “Meet the Press” program. “There’s no bend on permanent extension of tax cuts for the wealthiest Americans.”

The Obama Administration’s definition of “wealthiest Americans,” is an elastic ones, stretched according to political needs. The pending expiration of the 2001 and 2003 tax rates on Jan. 1, 2011, dwould in fact mean major tax increases on thousands of small manufacturers — S Corporations and other pass-through entities — that file their business taxes at the individual rate. Under the President’s plan, the top marginal rate for many of these employers could jump from 35 to 39.6 percent.

“The president still believes we have to move forward with these tax cuts for the middle class,” Axelrod said.  “But we can’t afford to borrow another $700 billion to pay for tax cuts for millionaires and billionaires,” he added, conspicuously ignoring the impact on small business, the economy and job creation.

News coverage and commentary…

Join the discussion 5 Comments

  • […] This post was mentioned on Twitter by Ken Shimizu, Get Govt Works 4 Us . Get Govt Works 4 Us said: President's Adviser Affirms Plans to Raise Taxes on Small Business: The reps' campaign slogan, spending cut, has… http://bit.ly/aoKIYH […]

  • The fact is that higher taxes on Americans earning more than $250,000 per year will cause only 2% of small business owners to pay more taxes. That means 98% will not have their taxes raised.

    Don’t believe anyone: check the facts for yourself and make up your own mind. There is just much propaganda and disinformation being spread on this and other important issues.

  • hsr0601 says:

    Phase 1 : This great recession came from Downfall of the Middle Class still needing Care.
     
    1. The deficits have mushroomed not because of Social Security, Medicare and Medicaid but because of “two unpaid wars, tax breaks for the wealthy, a Medicare prescription drug bill written by the pharmaceutical industry, and the Wall Street bailout.”
     
    a. Why not stop the Afghanistan war at a price tag of 140 billion a year…why not reduce what U.S. spends for military 800billion a year…U.S. military budget is as big as the next 27 countries COMBINED !
    Even Overall US intelligence budget tops $80 billion annually.
     
    b. End Bush-era tax breaks for the wealthiest Americans.
     
    c. Eliminate tax credits for big oil companies that have posted the highest profits in history.
     
    d. For example, a reeling housing market probably would slide further if, as recommended, Congress were to repeal the tax deduction for mortgage interest
     
    e. The country got here because of the bursting of an $8 trillion housing bubble. This bubble was fueled by the reckless and possibly unlawful practices of the Wall Street banks, like Morgan Stanley, the bank on whose board Bowles sits
    Co-chair, Erskine Bowles, who has been on the board of Morgan Stanley since 2005, probably prefers pointing harpoons at other targets.
     
    2. AS we are all aware, while many of small businesses are in financial trouble, lots of big name companies are reluctant to expand businesses, even with adequate capital.
     
    From what I understand, they might take into account that the country is suffering from 9.6 percent unemployment, more than 25 million people are unemployed, or have given up looking for work altogether, tens of millions of people are underwater in their mortgage and millions face the prospect of losing their home to foreclosure, and beyond, say, low demand.
     
    Given, the choice is clear, which one is going a long way to desperately needed job boost, tax credit for middle class or others.
     
    Phase 2 : The reps Will Stomp On Middle Class & Economy.
     
    The SHAMELESS reps’ principal : No principal & power-only !
     
    1. The reps’ campaign slogan, spending cut, has nothing to do with the deficit cut.
     
    The Bush tax cut for the wealthy will add an additional $700 billion to the deficit over a decade.
    Under the existing Bush tax cut for lavish bonus parties, a sole job plan for the republicans, the country already saw millions of job cuts.
    And hence it’s the right time to ask themselves as to how they can pay for it.
     
    As for the Democrats, sound investments = deficit increase.
    As for the reps, empty giveaway policy = SHAMELESS top priority.
     
    2. Over the duration of healthcare debate, using the preliminary cost analysis of CBO, the reps opposed the public option stubbornly, but after the release of final score, they have been defiant on the referee.
     
    Inaction cost in relation to health care reform totals $9trillion over the next decade.
    The nonpartisan Congressional Budget Office estimates that reform will reduce the federal deficit by $143 billion over the next 10 years and as much as $1 trillion during the following decade
     
    3. In view of Medicare & Social Security :
     
    “Don’t Let Government Touch Your Medicare & Social Security”
    “We will instead Stomp On Your Medicare & Social Security”
     
    4. Jobs ahead in another Bush era ( = Entire Downfall ) ??
    I think D.S. is going to realize vividly how Bush era wrecked economy.

  • […] cooled a bit since the Congressional catfight that preceded Nov. 2's midterm elections. …President's Adviser Affirms Plans to Raise Taxes on Small BusinessShopfloorSmall Business Owners Stand To Lose More If Tax Cuts Aren't ExtendedAmerica’s […]

  • […] This post was mentioned on Twitter by MFG.com, Manufacturers Assoc.. Manufacturers Assoc. said: Translating David Axelrod: President intends to stick by tax increase on small business. http://shopfloor.org/?p=16102 #manufacturing (cw) […]

Leave a Reply