Why do Democrats HATE Small Businesses ?

[cbelt3]

http://www.cleveland.com/business/index....et_pr.html

"Democrats are considering trying to make it harder for owners of so-called S corporations to avoid paying Social Security and Medicare payroll taxes on some of their earnings, said a Senate Democratic aide speaking on condition of anonymity to reveal an emerging party strategy"

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So companies (like my family's company) that employe dozens of people, and pay their Medicare and Social Security, now have to pay MORE taxes for ... well, non employees ?

Oh. I see the 'logic'... they think that all business income is 'unreported wages'. Riight.
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Well, this is a bit of political suicide for the Dems. A lot of the '99%' have small businesses. And a lot of their 'voters' work for small businesses.

Idiots.

[Pam]

I don't get the same impression reading the article you linked to. At all. I saw a lot of loopholes for not paying legitimate taxes.

[$tevie]

It's funny. People always complain that Congress should do something about tax loopholes -- but whenever Congress zeroes in on one, then the whining begins.
http://www.google.com/hostednews/ap/arti...2021fbfa8e
EDIT: because WSJ wants you to subscribe so I changed links.

[cbelt3]

What 'loopholes' ?

SSI and Medicare are for employee expenses. You know.. to pay for the 'future benefits'. Right ?

Business income is NOT an employee income.

[freeradical]

It sounds like poison pill politics.

The idea is likely to face strong Republican opposition in the Senate, but Democrats believe there would be political value in forcing GOP senators to vote on the measure, win or lose.

[Pam]

cbelt3 wrote:
What 'loopholes' ?

SSI and Medicare are for employee expenses. You know.. to pay for the 'future benefits'. Right ?

Business income is NOT an employee income.

When business income goes into the pockets of the owners but not declared as salary, I call that a loophole.

[$tevie]

cbelt3 wrote:
What 'loopholes' ?

SSI and Medicare are for employee expenses. You know.. to pay for the 'future benefits'. Right ?

Business income is NOT an employee income.

Designating some of your income as compensation from the firm's profits as opposed to wages is a loophole. It's semantics. Having some rules as to how much of your income can be derived from the firm's profits as opposed to your so-called wages would end the word games.

[cbelt3]

So should you pay Medicare and Social Security tax on all your other earnings ? Interest ? Dividends ? Capital Gains ?

Look, I've run a small business. I worked DAMN hard for the earnings. I invested my own money and got a return. Why the heck should I pay additional taxes on my own investments, in myself ?

Sounds like the Dems want everyone to be a wage slave to some evil Corporation.

[mattkime]

>>So should you pay Medicare and Social Security tax on all your other earnings ? Interest ? Dividends ? Capital Gains ?

I'd like to hear the argument against it.

[cbelt3]

Well, my argument on Social Security is that it is designed to provide a pension for employees. And oddly enough, small business owners who do not pay themselves a 'salary' are NOT eligible for Social Security benefits.

That's pretty much the definition of 'unfair' in my dictionary.

Medicare is more of an entitlement program, and so this funding strawman is a simple additional tax. Again, on the small business community.