The stupidity of McCain's "Joe the Plumber" dominated campaign - and the people who fall for it - is surreal.
Under Obama's plan, the taxes are raised for people with $250k AGI (adjusted gross income).
For the small business owner to pay him- or herself $250k in salary, the small business must bring at least as much in profit - assuming no reinvestment in the business growth, and no other share- or bondholders.
At a very conservative P/E of 10, this means that the business would be worth $2.5M.
With $2.5M in assets, that would make Joe the Plumber a multimillionaire - exactly the constituency to which Republican party caters. Well, that and of course the stupid people who take McCain's claims at the face value...
And note that Obama isn't touching the corporate tax rate (which is on NET income) for a corporation making $250K/year net profit. Obama is only touching the corporate tax rate for corporations making over $335K/year net profit -- to bring it *up* to the same tax rate as a corporation making $250K/year net profit. Yep, Dear Leader's last tax cut gave a tax break to corporations netting millions of dollars per year, but no tax break to small businesses! Talk about "No MIllionaire Left Behind"...
ReplyDeleteHere's our *current* nutty corporate tax rates. Obama is going to raise everything to an even 39% for everybody netting over $335K/year net profit (that's profit after expenses, of which Joe's salary would be an expense), so that big business no longer gets a tax advantage over smaller businesses:
Corporate Tax Rate
Rate Taxable Income
15% $0-50,000
25% 50,001-75,000
34% 75,001-100,000
39% 100,001-335,000
34% 335,001-10,000,000
35% 10,000,001-15,000,000
38% 15,000,001-18,333,333
35% Over 18,333,333