Geithner: Taxes on ‘Small Business’ Must Rise So Government Doesn’t ‘Shrink’

OK, I concede the point that the SBA considers some businesses with up to 500 employees to be a 'small business.' However, the small businesses that we are discussing with owners that would be affected by increasing the upper bracket tax tables are those types that have pass-through income from their business to their personal tax returns. These types of businesses are S-Corps and partnerships. When Geithner says that only three percent of small businesses will be affected by raising the top tax rate he is referring to S-Corp and partnerships whose owners earn more than $250,000.

This is incorrect. The owners that fall into this 3% category are lawyers, accountants, dentists, doctors, plumbers, etc. They are usually solo operators or may have an admin assistant. They are NOT employing 100's of people.

This may or may not be true, it depends on the tax filing status of the business. The answer depends on how many small businesses are sole proprietorships. Here again, sole proprietorships are not big employers. Typically the owners employ family members. Looking at Mandym's post where he said:

In 2009,there were 27.5 million businesses in the United States, according to Office of Advocacy estimates.The lastest available Census data show that there were 6.0 million firms with employees in 2007 and 21.4 million without employees in 2008.

would support the contention that most small businesses are solo operations.

Using Mandym's number of 27.5 million small businesses, then 3% of those would represent 825,000 entities.

 

Not my numbers, they belong to the SBA.

 

I think it is up to you to prove that 3% of small business owners provide the majority of jobs generated by small businesses. Please quit being so abrasive.

 

So are you going to show proof that 3% of small business owners provide the majority of jobs created by small businesses? Otherwise, you can join me at the crow table.

 

>>>Most small business owners are taxed on profit, not take home

>>http://www.irs.gov/taxstats/bustaxst...=96405,00.html

>>The majority of businesses are s-corps. S-corps pay no taxes. All profits and losses are passed through to the stockholders.


>Proof of exactly nothing.

Proof that most small businesses don't pay income taxes.

 

I did not call you a liar, I said the statements were false. I assumed you did not have the correct information.

Your contention that I called you a liar is the same as the liberals saying "Bush lied" about Iraq and WMD's. Do you believe that Bush lied? Or was he lacking correct information?

You are asking me to prove something I don't believe to be true. The burden of proof is on you.

Nevertheless, it should be obvious to anyone that accepts the SBA numbers that Mandym posted that 3% of small business owners do not and could not create the majority of small business employment.

The numbers say that there were 6.0 million firms with employees in 2007. Three percent of 6 million is 180,000. That means, according to your contention, that 180,000 small businesses are responsible for the majority of small business employment. Can you prove this?

 

I guess not. It's been 4 days and no proof.