Senate votes to raise taxes on 1.2 million small businesses, over 700,000 may lose jobs

Photo credit: Sean MacEntee

Yesterday, the Senate narrowly voted (51-48) to raise taxes on 1.2 million small businesses, which will likely kill more than 700,000 jobs at a time when nearly 13 million Americans are out of work. Senators Joe Lieberman (I-CT) and Jim Webb (D-VA) joined all Republicans in bipartisan opposition to the tax hike.

This is President Obama’s economic plan. This is what he asked Congress to do. And he recently told a fundraising crowd that his economic plan has been working.

“Just like we’ve tried [Republicans’] plan, we tried our plan—and it worked,” he said.

But Obama’s Treasury Secretary, Timothy Geithner, said yesterday that “the economy is not growing fast enough,” acknowledging that “unemployment is very high.” “The institutions with authority should be doing everything they can to try to make economic growth stronger,” he said.

The President’s plan, now endorsed by the Democratic majority in the Senate, has little chance of going anywhere in the House of Representatives. But it has put the 51 Senators who want to raise taxes on record.

Perhaps the biggest lie in the tax debate is that this vote affects only “the rich.” That’s simply not true. Many small businesses, known as flow-through businesses, pay their taxes through the individual income tax. Ernst and Young estimates that these types of businesses “employ 54% of the private sector work force.” This tax hike squarely hits 1.2 million of these businesses that hire workers and have incomes above $200,000.

Read more from this story HERE.

  • Douglas

    There is no question those in Washington have their collective heads up their Butts, and I can hardly wait to see them all gone from our Halls! Obama claiming his economic plan is working is another example of how far he is out of touch with reality…it would do America good if he spent more time on the golf course (In Kenya or anywhere outside the USA). This guy has sent jobs off shore and used Tax dollars to promote employment in every country but America! As his Wife proudly claimed…I hated America until you elected my Husband…now I can spend all the money I want after all it is only tax dollars…and everyone knows that tax dollars grow on trees!!! The bottom-line is we must get rid of all Democrazies and Republicans that think like Democrazies!

    Everyone should read the efforts made by our Fore Fathers to the King and why they were forced to take the actions they did in the 1700’s. The king and this Federal Government are so much alike you would think the two had gone to the same classes on ‘Dictatorship Gone Wild’!

    3-1/2 years this guy many Americans and Non Americans had placed in the White House spent all of his time forcing revised Health care that doesn’t work…the idea of supply and demand only works in a free market environment…not Government Controlled!! Most wise businesses know that they will only build what the market wants and they can afford!! Obamacare is neither! Of course in the free Market Scenario People Must Have Money (Jobs) to Pay for their own Health Care in a Free Market…because Free Markets aren’t Free Lunches!!

  • Noah2Jonah

    If you have a small business and the whole hog communist socialist Senate wants to suck blood out of you for having a business, why wouldn’t you want to close your business and go on welfare and get food stamps. I closed my business and I will meet you at the government place where we all eat for free—for as long as the food lasts. See you there, don’t be late!

    • Paul in Orlando

      I hear you! If these losers get re-elected, I plan to quit working, cash in all of my assets and live off of it until the government supports me. Actually, I already cashed in most of it and I am looking at other options outside the US. I will NO LONGER be paying taxes to contribute to this socialistic madness.

  • the_uglydog

    AND the press thinks they’re heros, standing up for taxes on the “RICH”.

  • Nellie CA

    We already have many places closing their business and now with Obama- care cost and more taxes, more places will close. I have lost two doctors in the last few months because of Obama care and non payment of medicare and medicaid. People who are on unemployment can’t pay the bills and losing their homes. My increase of copayments and drugs that Medicare don’t cover is costing me a lot of money. more in the last 3 years. We can’t support the world when we have no jobs to support the American people. I am trying to do my part by voting for people who will bring our jobs home, no more refugees and illegals, no more Mexican produce until the trade is balanced. No more foreign products in my house! I can do without!

  • cojode

    How about a public listing of the Senators who voted for this bill?

  • LibertysSon

    The Senate doesn’t have the constitutional authority to initiate or raise taxes. That is the purview of the House of Representatives.

  • This is an outrageous lie – no such bill was voted on or even discussed on 26th July 2012 – you are peddling fear and distortion.