Friday, June 24, 2011

Geithner, Taxes on Small Business So Government Doesnt Shrink

Tax cheat Tim Geithener admits wanting to tax small business owners making over $250,000 to fund the government entitlement programs. It is obvious that Tim Geithner does not understand economics. By targeting a certain group that creates 70% of jobs in America, the Obama Administration is punishing success in this country. Obama despises people who are innovated, business-minded, and accomplished. Geithener still blames Bush for Obama's ineptitude. It is important to remind the American people there is a big difference between Bush and Obama on fiscal policies. President Bush expanded the federal budget by $700 billion through 2008, but President Obama would add another $1 trillion. President Bush began to correct financial bailouts, but President Obama is accelerating that course and added bailouts to the private sector like banks and the auto industry. President Bush created a Medicare drug entitlement that will cost an estimated $800 billion in its first decade, but President Obama has proposed a $634 billion down payment on Obamacare. President Bush increased federal education spending 58 percent faster than inflation, but President Obama doubled it. President Bush became the first President to spend 3 percent of GDP on federal antipoverty programs, but President Obama has already increased this spending by 20 percent and put more Americans under the welfare program. President Bush tilted the income tax burden more toward upper-income taxpayers, but President Obama would continue to tax on the upper-income taxpayers, and also, he would tax the middle class.

( - Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

Geithner’s explanation of the administration's small-business tax plan came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”

Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”