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Will Obama's Tax Plan Will Cripple Small Business Owners?

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Question: Will Obama's Tax Plan Will Cripple Small Business Owners?
Answer:

No.

The following statement made by Sarah Palin on October 2, 2008 during the vice presidential debate, a statement that has been made in McCain ads and by McCain himself (McCain gave the actual number as "23 million small businesses"):

"But when you talk about Barack's plan to tax increase affecting only those making $250,000 a year or more, you're forgetting millions of small businesses that are going to fit into that category. So they're going to be the ones paying higher taxes thus resulting in fewer jobs being created and less productivity."

The Truth About Obama's Small Business Tax Plan

  • The overwhelming majority of small-business owners would see no increase, and in fact, sole proprietors filing on personal tax returns might even seen a decrease in taxes; and
  • Obama's tax plan only proposes to raise rates only on couples making more than $250,000 or singles earning more than $200,000. Most small business owners (calculated at less than do not earn enough to be affected by any tax increases).

Source:

FactCheck.org. "McCain's Small Business Bunk." July 14, 2008.

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