As the Obama administration continues to insist only "the rich" will face tax increases, Americans for Tax Reform says a majority of the small-business sector will see higher taxes. Fifty-five percent of S corporations and partnerships will see a tax hike, it says. More "progress" from the "progressives."But when you take a look at what they're actually quoting at the (Richard Mellon Scaife controlled foundations supported) Americans for Tax Reform, you'll see the whole holes in their argument.
Some definitions from ATR:
- Unlike corporations, small businesses usually don’t pay their own taxes. Rather, business profits flow through to the business owner. The business owner pays taxes on her small business by adding the profits to her income tax form. Therefore, personal income taxes are the same thing as small business taxes.
- According to the IRS, most small business profits pay taxes in households making more than $200,000 per year. The IRS keeps track of two types of small business income: sole proprietors, and “pass-through” entities like partnerships and S-corporations.
Finally we have:
- S-corporations and partnerships. There were 8 million partners and S-corporation shareholders in 2008. On net (profits reduced by losses), these owners reported business profits of $367 billion. Virtually all of this profit faced taxation in households making more than $200,000 per year. Aggregate pass-through entity profits will almost entirely fall in households making more than $200,000 per year. [Emphasis in original]
Looks to me like its profits from these S-Corporation small businesses that are income above $200,000 are taxed.
This according to Americans for Tax Reform.
Now go back and look at what the Trib wrote and ask yourselves these questions.
- What exactly did they write?
- What message did they send?
- What message were they trying to send?
- How does it jibe with ATR's details?