Romney Was Right! Small Business Owners Are Getting Screwed!
February 2, 2013 2 Comments
I have been shouting from the roof tops about small business owners getting screwed by the Obama Administration’s “drum beating” campaign of class warfare to tax the rich. Small businesses without a capital infusion from Venture Capitalists (VC) or angel investors, take many years to grow and become profitable.
Our investment capital comes from our own savings accounts, 2nd mortgages and personal loans. We work immeasurable hours and spend our own money to build our businesses, while our famous “You Didn’t Build That” president, Obama, is trying to take all that away.
Small business owners are not “rich.” They are getting screwed by Big Government and Big Business because they pay their taxes as individuals if they file as a Sub Chapter S or LLC corporations that pass all income down to the individual small business owner.
Now, as part of the fiscal cliff deal, higher taxes have become a reality for many small business owners. Obama has done a great job of pitting the poor against the rich at the expense of the middle class, of which, include most small business owners.
The election’s over. Romney was right! Small Business Owners Are STILL Getting Screwed by Obama and his cronies!
Romney in the first 2012 presidential debate was absolutely right when he said, “The gap between the rich and the poor has gotten larger. The rich will probably do fine if he (Obama) is reelected,” Romney said. “It is the middle class that is in real trouble. And the poor. I want the poor to get into the middle class. So many have fallen into poverty by virtue of his (Obama’s) policies. So this for me is all about the 100 percent.”
The Business Roundtable comprised of 150 of its corporate titans, in return for various forms of “pork” threw small business under the bus. As reported by the Wall Street Journal, Big Business Sells Out Small Business, “One million small American business owners who pay individual income taxes shoulder a big rate hike (up to 39.6%, from 35%) while radically lightening the tax load for the Roundtable’s own corporate behemoths (to 28% from 35%).”
Additionally, when a separate bill is passed to lower corporate tax rates, by which any corporate tax reform will hinge upon on closing “loopholes” to pay for a lower corporate rate. Small business owners would lose tax perks along with everyone else—meaning they would pay even more—but they would not benefit from lower corporate rates.
As reported by the Blaze, Who’s Really Selling Out Small Business, “The $625 billion tax increase passed. Big business didn’t get their corporate tax cut…yet. But boy did they get goodies $40 billion in crony capitalism payoffs. The new tax bill gives away $78 million in tax breaks to benefit NASCAR; $62 million in tax credits for companies operating in American Samoa; $222 million of tax rebates to rum companies; $430 million in tax rebates for Hollywood film producers; $12 billion (with a “b”) in tax credits for wind power phonies like GE; $2.2 billion to renewable diesel companies; and $222 million in accelerated tax depreciation for businesses located on Indian reservations. Many of these companies will pay no taxes at all because of these rebates and credits.”
Much of the money small businesses earn, gets taxed as individual income, and would be reinvested in their businesses. The naysayers would say, the money that is reinvested in the business is tax deductible because it can be expensed and therefore is not taxable. The problem with that theory is a little thing called cash flow. Cash flow is the Holy Grail of small business, money held in reserve, money not yet spent, which is essential for a small business, money that fuels business growth. That money is is taxed as individual income for a small business owner.
Finally, there will be so called experts, that will say change your filing to a “C” Corp. Without getting into all the details, every small business looks at the pluses and minuses of S Corp. vs. C Corp, vs. LLC etc… and a properly run small business will know best how to file their taxes. Only they would know, based on their situation, what’s best when it comes to filing their taxes. If you think you know better, start your own damned business and see how that goes. I’ll still be shouting from the rooftops, that small business owners are getting screwed!
Here’s a small business owner’s take on how small businesses are being sold down the river by this administration and he voted for Obama. Gia Pronto owner Marco Lentini on how government policies’ are impacting small business growth. Is Government Getting in the Way of Small Business?