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Thread: How GOP Tax Plan Will Slam Small Businesses

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    How GOP Tax Plan Will Slam Small Businesses

    NOV 8, 2017 @ 09:19 AM

    John Wasik

    Here's a pitch that's pure bamboozlement: The new GOP tax plan will create jobs because tax rates will be lower for businesses.

    Let's qualify that statement a bit: While global corporations and those specializing in pass-through income fare especially well, small businesses will get creamed with higher tax rates under the current plan.

    The reason why the GOP plan is so toxic for the smallest of firms and job growth is that these entities generate about two-thirds of new jobs, according to the Small Business Administration. If they have to fork out more to Uncle Sam, they certainly won't be hiring more workers.

    Since small firms are the bedrock of our local economies, raising taxes on small firms is not only wrong, it's un-American. We stay in our communities. More than half of us work at home. The GOP should go back to the drawing board. Their plan is going to hurt some 30 million businesses.

    https://webcache.googleusercontent.c...&ct=clnk&gl=us
    Thanks from Thx1138 and MaryAnne

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    I guess small business owners aren't able to invest in politicians like the billionaire class does.
    Thanks from Thx1138

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    Small businesses are a threat to the large companies, so of course our government does the best to harm them. Those small businesses can often grow into companies that compete with the giant ones.

    Also, the last time they passed patent reform in 2015, they put in a policy that has allowed corporations to kill most issued patents. And SCOTUS rulings have also harmed patent strength. All while the mega companies sold a line of crap about how bad patent trolls were. Now they just squash all patents easily and don't bother licensing techs from smaller companies.
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    Quote Originally Posted by labrea View Post
    NOV 8, 2017 @ 09:19 AM

    John Wasik

    Here's a pitch that's pure bamboozlement: The new GOP tax plan will create jobs because tax rates will be lower for businesses.

    Let's qualify that statement a bit: While global corporations and those specializing in pass-through income fare especially well, small businesses will get creamed with higher tax rates under the current plan.

    The reason why the GOP plan is so toxic for the smallest of firms and job growth is that these entities generate about two-thirds of new jobs, according to the Small Business Administration. If they have to fork out more to Uncle Sam, they certainly won't be hiring more workers.

    Since small firms are the bedrock of our local economies, raising taxes on small firms is not only wrong, it's un-American. We stay in our communities. More than half of us work at home. The GOP should go back to the drawing board. Their plan is going to hurt some 30 million businesses.

    https://webcache.googleusercontent.c...&ct=clnk&gl=us
    I thought a lot of small businesses were taxed at the individual rates of their owners, and this was supposed to provide a break to most of them. Entrepreneurs are already getting annihilated by Obamacare glitches in too many cases. We don't need to make life harder on them.

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    Quote Originally Posted by labrea View Post
    NOV 8, 2017 @ 09:19 AM

    John Wasik

    Here's a pitch that's pure bamboozlement: The new GOP tax plan will create jobs because tax rates will be lower for businesses.

    Let's qualify that statement a bit: While global corporations and those specializing in pass-through income fare especially well, small businesses will get creamed with higher tax rates under the current plan.

    The reason why the GOP plan is so toxic for the smallest of firms and job growth is that these entities generate about two-thirds of new jobs, according to the Small Business Administration. If they have to fork out more to Uncle Sam, they certainly won't be hiring more workers.

    Since small firms are the bedrock of our local economies, raising taxes on small firms is not only wrong, it's un-American. We stay in our communities. More than half of us work at home. The GOP should go back to the drawing board. Their plan is going to hurt some 30 million businesses.

    https://webcache.googleusercontent.c...&ct=clnk&gl=us
    ""Currently, freelancers, small-business owners and others pay taxes at rates of 10% and then 15% on their profits if their total income puts them below about $125,000 annually.

    The GOP would tax these same businesses at 25% on about one-third of their profits and at 10% to 15% rates on the rest. This completely contradicts the oft-stated GOP claim that what matters are marginal tax rates, the rate paid on the next dollar of income."

    What people don't realize is that an LLC or an S Corp doesn't really need to have a profit at all, at least a book profit. The reason for that is because you could just simply pay yourself the money. You would then pay at the ordinary income rate just like any other wage earner. Or, you could let the profit pass thru to your personal return. Now, if the latter really works out worse, then just do the former and you would surely not be any worse off than before
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    Southern Strategy Liberal OldGaffer's Avatar
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    Quote Originally Posted by publius3 View Post
    ""Currently, freelancers, small-business owners and others pay taxes at rates of 10% and then 15% on their profits if their total income puts them below about $125,000 annually.

    The GOP would tax these same businesses at 25% on about one-third of their profits and at 10% to 15% rates on the rest. This completely contradicts the oft-stated GOP claim that what matters are marginal tax rates, the rate paid on the next dollar of income."

    What people don't realize is that an LLC or an S Corp doesn't really need to have a profit at all, at least a book profit. The reason for that is because you could just simply pay yourself the money. You would then pay at the ordinary income rate just like any other wage earner. Or, you could let the profit pass thru to your personal return. Now, if the latter really works out worse, then just do the former and you would surely not be any worse off than before
    If it is not going to be effective, why are Republicans doing it?
    Thanks from labrea

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    Quote Originally Posted by labrea View Post
    NOV 8, 2017 @ 09:19 AM

    John Wasik

    Here's a pitch that's pure bamboozlement: The new GOP tax plan will create jobs because tax rates will be lower for businesses.

    Let's qualify that statement a bit: While global corporations and those specializing in pass-through income fare especially well, small businesses will get creamed with higher tax rates under the current plan.

    The reason why the GOP plan is so toxic for the smallest of firms and job growth is that these entities generate about two-thirds of new jobs, according to the Small Business Administration. If they have to fork out more to Uncle Sam, they certainly won't be hiring more workers.

    Since small firms are the bedrock of our local economies, raising taxes on small firms is not only wrong, it's un-American. We stay in our communities. More than half of us work at home. The GOP should go back to the drawing board. Their plan is going to hurt some 30 million businesses.

    https://webcache.googleusercontent.c...&ct=clnk&gl=us
    TOTAL HORSESHIT! And I can think of 5 or 6 deductions going away for small business owners ("pass through income" taxpayers) that are going to FUCK THEM OVER! Depending on WHAT deductions they take, no we won't fare well!
    Last edited by cpicturetaker12; 24th November 2017 at 07:35 AM.

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    Quote Originally Posted by OldGaffer View Post
    If it is not going to be effective, why are Republicans doing it?
    The point they are trying to make is that it will hurt very small businesses by increasing the rate of taxation on those entities. This is false. By limiting taxation on pass thru incomes to 25%, this will be a boon for many small businesses. The businesses with owners below that tax bracket will not be negatively impacted by it.

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    Quote Originally Posted by cpicturetaker12 View Post
    TOTAL HORSESHIT! And I can think of 5 or 6 deductions going away for small business owners "pass through income" that are going to FUCK THEM OVER! Depending on WHAT deductions they take, no we won't fare well!
    Well, like what? Because the LLC still calculates its profits just like any other business, if the expense is a legitimate business expense, its deductible from the gross. Like I said, you could just as well pay yourself and 'zero' out the profit at the LLC level. It doesn't matter.

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    I love the Republican deflections, "it wont raise the deficit because of huuuuuuge economic growth", "it really wont fuck over small business owners because they can figure out a way to dodge it", "the middle class tax cuts expiring in 10 years but the tax cuts for the 1% are permanent is just a feature, somebody will come along over the next ten years and make them permanent, maybe"

    Why are we even having tax cuts with a 20 trillion debt and projected deficits into infinity? No economist on earth is claiming either of the Republican tax cut bills will not raise the deficit under any kind of scoring, real scoring, or the GOP voodoo dynamic scoring that has failed every time it has been used..
    Thanks from MaryAnne and labrea

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