You have to hand it to the GOP – when they are wrong, they are really, really wrong.
As Speaker John Boehner works to discredit President Obama’s common sense plan to reset upper income tax rates to Clinton-era levels, he is recycling an old lie that he’s already admitted to flubbing in the past.
NPR quotes Boehner speaking about Obama’s tax plan on Nov. 28:
Raising taxes on the so-called top 2 percent, half of those taxpayers are small business owners that pay their taxes through their personal income, tax filing every year.
The Speaker’s staff tried again to pass off the obvious manipulation as a mistake. “[Boehner] meant to say half of small business income would be hit by the president’s plan for higher tax rates,” said spokesman Brendan Buck. But Boehner’s team gave the same excuse for the same lie a year ago.
So what’s the truth? Obama aims to reset income taxes to pre-Bush-era levels for individuals earning more than $200,000 and couples earning greater than $250,000, amounting to, at most, a 4.5 percent marginal income tax increase. Individuals falling into this bracket do account for about 50 percent of “small” business income. But they don’t represent half of small businesses – not by a long shot.
Reviewing data through 2005, only 3 percent of all small businesses would pay higher taxes under Obama’s tax plan, according to the Joint Committee on Taxation.
Another study that analyzed 2007 tax data came up with a slightly higher percentage, concluding that small business owners who would pay higher taxes under Obama’s plan total 7.5 percent of all small business owners, according to the Office of Tax Analysis.
Whether it’s 3 percent, or 7.5 percent, or somewhere in between, Boehner’s pants are on fire when he claims that 50 percent of small business owners would be impacted by Obama’s tax increase.
Moreover, small businesses thrived more under Clinton-era tax rates (the ones Obama wants to return to) compared with Bush-era tax rates that favor the wealthy. Take a look:
Want to make a difference in the debt debate? Here’s what you can do:
- Write or call your representatives to tell them you support tax increases on the wealthy.
- Tweet using the hashtag #my2k to tell Congress to vote to raise taxes on higher income earners and preserve the average $2,000 tax break for the middle class.
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