The Curious Republican Definition of “Small Business”

[ecdab]

Let us not forget how the GOP is defining the term "Small Business" as the debate over taxation of the wealthiest among us continues.

The Curious Republican Definition of “Small Business”

By: David Dayen

The typical Republican dodge to make it look like they don’t simply support handing out $100,000 checks to millionaires is that increases on the high-end marginal tax brackets would hurt “small businesses” at a sensitive time for the nation’s economy. I can give you multiple reasons why this just isn’t true.

First off, Democrats and economic analysts agree (and Republicans haven’t to date contested) that the “small businesses” affected represent a small percentage of all small businesses in the country. According to the CBPP, only 1.9% of all tax filers with small business income sit in the top two tax brackets.

Republicans typically respond to this by saying that even this small number of businesses, maybe 750,000 total, represents 50% of all small-business income. Two reasons for that. One, the “small businesses” in that calculation include companies like Bechtel and PriceWaterhouseCoopers, large multinational corporations:

"According to the Washington Post, which obtained its information from House Democrats, some of the “small businesses” that could see a small increase in their marginal taxes are household names like accounting giant PricewaterhouseCoopers and Tribune Corp. — privately-owned behemoths whose owners and managers dodge corporate taxes by reporting profits on their income tax returns.

It’s those receipts that allow Republicans to claim, based on a recent report by JCT, that Obama’s plan will ensnare 50 percent of all “small business income. JCT addressed this in the same report. “These figures for net positive business income do not imply that all of the income is from entities that might be considered ‘small.’”

More at http://news.firedoglake.com/2010/09/20/the-curious-republican-definition-of-small-business/

[ixion]

1. The Tribune, Bechtel and PWC are 'small businesses'?

c'mon... :puke:

[liberal N proud]

2. The "small business" meme is just one more republican twist on facts

They do this time and time and again and the Democrats do nothing to change that.

[DCKit]

3. Just like their definition of "family farm". All the big names are cashing in. nt

[ecdab]

4. Indeed - I was reading through DU yesterday and was surprised

how little the republican twisting of language was brought up in reaction to posted articles and video.

[lefthandedlefty]

5. Business don`t pay taxes on gross income

they pay it on the net or
"proffit"