New Report from CTJ: The Bush Tax Cuts and Small Businesses

| | Bookmark and Share

Sometimes people accidentally say what they really mean. Bill Rys, spokesperson for the National Federation of Independent Business (NFIB), recently acknowledged to the Washington Post that President Obama’s plan to raise the rates for the top two income tax brackets would only affect a fraction of small businesses, but he argued that they are the largest firms and therefore the ones that are most likely to be hiring.

In other words, NFIB claims to represent all small businesses, but when it comes to its lobbying focus, it really represents only the largest few. A new report from CTJ explains that, despite NFIB's claims, President Obama's tax plan will have little or no impact on any enterprise that can reasonably be called a "small" business.

Here are five points explained in the report:

1. Very few business people (3 to 5 percent) are rich enough to lose any portion of their tax cuts under Obama’s plan.

2. Of the business owners who would pay higher taxes under Obama’s plan, those with the very highest incomes cannot reasonably be called “small” business owners.

3. A person who receives their income from a business they own would have to receive over $250,000 (or over $200,000 if unmarried) in net profits in order to lose any part of their tax cuts under President Obama’s plan.

4. In order to hire people, business owners need customers, not tax cuts.

5. Claims that the richest 2.1 percent (who would lose some of their tax cuts under Obama’s plan) account for a fourth of all consumer spending are incorrect.

Read the report.

Thank you for visiting Tax Justice Blog. CTJ and ITEP staff will soon retire this domain. But ITEP staff are still blogging! You can find the same level of insight and analysis and select Tax Justice Blog archives at our new blog,

Sign Up for Email Digest

CTJ Social Media

ITEP Social Media