Sunday, April 04, 2010

New Taxes Crushing Small Businesses

For all the blather from Obama the other day that we're "turning the corner" from the recession with the addition of temporary government jobs, the reality if more and more small businesses are in danger of going under due to the onerous taxatation being piled on top of them.

America's jobs growth engine is being choked to death.

A record 25 percent increase in the taxes against US small businesses -- from costs associated with new health care law, to an increased Medicare tax, increased capital gains taxes and higher state and city taxes -- is repealing any ability of these entrepreneurs to add jobs to their payroll.

And the numbers for New York's small- to medium-sized business are just as harrowing.

By one estimate, the effective tax rate on the 26 million small businesses across the country -- which in the past have accounted for more than half of the job growth in the US -- has jumped to 50 percent from 40 percent, sucking valuable cash from the businesses.
But I though taxes weren't going up? Well, if you get your information from Obama's lapdog media you probably won't know any of this.
The 26 million small businesses in the US — like Eneslow Shoes, headed by CEO Robert Schwartz—are getting buried under an avalanche of new taxes, which include:

* An increase of 4.6% in federal taxes from 35% to 39.6% (expiration of Bush tax cuts)

* An increase in capital gains taxes from 15% to 20% (expiration of Bush tax cuts)

* A new tax of 3.85% on investment income, dividends, rents, royalties mandated in the new health care bill

* An increase in the Medicare payroll tax to 2.35% as mandated in the new health care bill

* In states like New Jersey and others, state and municipal taxes have been raised by the average of almost 2%
So before any of the joys of ObamaCare are so graciously bestowed upon the great unwashed, everyone is already getting crushed by the tax burden.

No wonder tea partiers are more popular than Congress and why the Democrats and the media are in overdrive trying to discredit them.

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