I’ve started more than a dozen small businesses. I’ve paid payrolls, health insurance, payroll taxes, workers comp, and unemployment insurance for hundreds of employees.
Because of that, my employees were able to pay their mortgages, buy groceries, send their kids to college, and provide for their families. For one small business, I spent about $50 million on things like advertising, marketing, promotion, lawyers and accountants. That money enriched and employed thousands of others. And that’s just one small business. Think of the impact that thirty million small business owners have on the U.S. economy. No wonder we create 70% or more of America’s new jobs. Small business owners are a far more powerful economic force than Exxon, Microsoft, GE, or WalMart.
So why is Obama trying to tax us to death? Why do small business owners feel demonized and punished? Is it Obama’s goal to drive us out of business? Or is Obama simply inexperienced, incompetent and clueless about business and how it works?
Mug or rob me once? Maybe it’s ignorance or a mistake. Twice? It’s a pattern. But coming up with ways to rob me (Obama likes the word “redistribute”) and damage my businesses on a daily basis? It’s time to get the message. Whether by mistake or on purpose, Obama and the progressive left are damaging and destroying more small businesses by the day.
Let’s look at the facts.
For 30 years, I have been able to deduct mortgage interest from my taxable income. Obama wants to end that. How many so-called “wealthy” taxpayers (i.e. small business owners) would no longer be able to pay their mortgage? How many homes would go into foreclosure? What would happen to the housing market? Overnight every home in America would lose 40% of its already decimated value. How many small business owners earn a living off of real estate? How many millions of jobs would be lost? Does Obama sound like a president looking to create jobs?
For 30 years, FICA taxes have been based on earnings. The current cap is just over $100,000 per year. Obama wants to remove the cap, thereby hitting small business owners with the largest tax increase in history. Overnight a small business owner making $500,000 per year would see his or her FICA and Medicare taxes go from about $15,000 per year to $75,000, and that’s before federal or state income taxes. That’s a $60,000 per year tax increase for a small business owner. That would drive hundreds of thousands of small business owners out of business. It would force layoffs. It would lower consumer spending and kill more jobs.
For 30 years, I ran my business without the extra taxes to pay for Obamacare. Now we face new taxes on income, stock sales, home sales, even on tanning beds! Worse is the provision mandating we report annually to the IRS every vendor from whom we purchase more than $600 of goods and services during the year. The cost of complying with this Big Brother mandate is unfathomable and threatens to drown millions of small businesses in paperwork.