Currently, American families earning $250,000 a year are in the second-highest tax bracket, at 33%. If the rate is allowed to roll back to the 2,000 level, it will be 36%. For families earning more than $373,000, the top rate is 35%. In 2,000, that top rate was 39.6%.
Republicans argue that allowing the tax rate to go back up on families making more than $250,000 a year will hurt small businesses and they won’t hire more people. But the Internal Revenue Service reports that only 3% of small business owners earn enough to be subject to higher tax rates. Three per cent!
My work experience tells me that demand creates jobs, not the income tax rate for the business owner. And profit drives any good business person. I doubt anyone would turn down higher profits in order to avoid paying three percent more in income taxes at year’s end.
If lower tax rates for the wealthy really stimulate job growth … well … please research the national unemployment rates of the past three years!
Our thought for today is from Albert Einstein:
“The hardest thing in the world to understand is the income tax.”