And With A Straight Face…

There must be a charm school someplace in Washington, DC.  At this school, politicians are prepped on how to look directly in the camera and tell a “fib”, or any other outlandish piece of misinformation.  John Boehner, Mitch McConnell, and Mitt Romney gave demonstrations yesterday of their perfected skills.

It seems all things good in this Country spring from one group of Americans.   They are, of course, the “Job Creators”.

This mythical group apparently includes hedge fund managers, investment bankers, CEOs, executives who outsourcer jobs, and anyone else earning more than $250,000 per year.  With their most sincere and serious faces, Boehner, McConnell, and Romney, woefully predicted doom and gloom if these small business owners were asked to give up their Bush tax cuts.  The world as we know it will end.

The Bush Tax Cuts are the elephant in the room.  They are set to expire by year end unless Congress agrees to extend them.  You can be sure of one thing.  The Koch brothers will not hire or let go one single worker whether the Bush tax cuts remain or are  eliminated.  From the Koch’s perspective it is more about the change in capital gains, dividends, and interest treatment that are the big bucks.  Changing the current 15% to marginal rates are big numbers.

For small business owners, census bureau data says the average small business has annual revenues of about $1.1 million.  If we assume that the owner takes profits as salary, then if the small business was very profitable, the owner might clear 25% or $276,000 per year.  With no Bush tax cuts, this owner might pay 4% more in tax ($11,000 more).

Nobody wants to pay more in taxes but death and taxes are the only things we can count upon.

The charm school value shined yesterday.  The three amigos, Boehner, McConnell, and Romney all characterized President Obama’s proposal to allow the Bush tax cuts to be extended for all those earning less than $250,000.  Speaking as if their first born had been snatched out of their arms, Boehner, McConnell, and Romney all pointed to the terrible impact this would have on job creators, especially small business owners.  How could anyone think about this in a weak economy?

Well consider this.  Our average small business owner would see no change on the first $250,000 and would see the increased 4% only on $26,000 above the $250,000.  The tax impact would be about $1000.  You must be dreaming if you think any business owner who believed there was demand for his product or service would not hire to meet this demand because of a $1000 tax increase.

Charm is wonderful, but a straight face is even better.

Explore posts in the same categories: Barack Obama, Democratic Party, Politics, Republican Party

Tags: , , , , ,

You can comment below, or link to this permanent URL from your own site.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: