Investors Business Daily explains.
Raising taxes on all those above $250,000 as Obama proposes would raise just $34 billion. That’s a whopping 3% of our $1.1 trillion deficit. Even if you seized all their income, it would only run the government for three months.
So the idea that taxing the wealthy will reduce the deficit is false. This is just class warfare, pure and simple.
Even so, Obama compounds the fib by going on to say his tax hike will have virtually no impact on small businesses. He notes, for example, that 97% of all small businesses would be untouched by his tax hike.
True, but irrelevant, as Treasury Department data show. For while there are 34.8 million small businesses in America, 30 million of those employ no workers.
Just 4.8 million, or 12%, employ workers. But an even smaller number — just 1.2 million — earn 91% of all the small business income. These are Obama’s “rich.”
But while they make up just 3% of all small businesses, they employ a stunning 54% of the total private U.S. workforce.
They are, in short, the nation’s job creators. And their owners, who report their small-business income on their personal income tax return, will be taxed at a higher rate by Obama.
So don’t be fooled. It’s not really the “wealthy,” as Obama says, who’ll get taxed. It’s small businesses. And it will have a devastating impact on jobs.
How devastating? A recent study by Ernst & Young noted that Obama’s tax hike, far from being “balanced,” would cost 700,000 people their jobs.
And it will no doubt kill hundreds of thousands if not millions more jobs in the future as would-be entrepreneurs decide not to start businesses in such a hostile tax and regulatory environment.
It’s important for us to realize that the people voting for Obama have no idea about these facts. A lot of people are annoyed that we lost the election last week. I think that if we want to win the next one then we have to start to think about becoming more persuasive with the people around us. We have to learn to deflate the slogans of those on the left with facts.