There is no way that Democrats could be ignorant enough not to understand that their proposed tax increases are going to hit businesses. Last week, the House Ways and Means Committee approved a 5.4% surtax on income over $1 million along with other smaller surtaxes on the evil, filthy, disgusting rich people earning more than $250,000.
The Tax Foundation has done an excellent job of figuring out exactly how this is going to affect the achievers - the business owners who write paychecks and provide a source of income for millions of Americans. The charts are worth a peak, but here are some of their findings ....
- 70.1% of returns facing a tax increase have some form of business income.
- 26.0% of all income earned by those returns facing a tax increase is business income.
- The total tax increase on business income would be $51.3 billion, a 24.5% increase, assuming business income is the last dollar of income earned.
- 36.7% of the total tax increase is attributable to tax increases on business income, assuming business income is the last dollar of income earned.
- The average return with business income would face a total tax increase of $3,246.
- The average return facing a tax increase would face a total tax increase of $54,716.
- The average return with business income that is facing a tax increase would pay an extra $66,979.
There's a lot more .. and it will be easier to understand if you read the chart.
And speaking of businesses .. the House Democrat plan also plans to impose a penalty of 8% of payroll if employers do not offer health insurance. This will be the case for all but the smallest of businesses. According to this editorial in the Miami Herald, a survey by the National Federation of Independent Business (NFIB) found that 20 percent of its respondents would simply shut down if they were faced with this choice. They couldn't afford it. One out of four said they would replace full-time workers with part-time workers in order to avoid having to pay anything.
Now this is change you can believe in! Remember, folks. Elections have consequences.