The administration is committed to extending the Bush tax cuts for 98 percent of the country while raising taxes on the top 2 percent of households, Treasury Secretary Tim Geithner said in a speech yesterday. Republicans are using a collateral damage argument against the plan, arguing that the administration might be aiming for the wealthy, but it's going to hit a lot of small businesses, as well. True?
Howard Gleckman from the Tax Policy Center finds that of the 36 million taxpayers who report income from Schedule C, E, or F (that is, as sole proprietors, members of an S corporation, or on a farm), "only 900,000, or 2.5 percent, would pay higher rates if the Bush tax cuts were allowed to expire for those in the top brackets." Two and a half percent. If those projections are right, it would mean that the Bush tax cuts would affect the same share of small businesses as it would American households. An interesting thought.
More importantly, my favorite baseball player of all time and the best pitcher to never win a Cy Young award just bought the Texas Rangers. Here's your Business Breakfast.
READ MY LIPS: NEW TAXES
Treasury Secretary Tim Geithner makes the case for raising taxes on the top two percent. [WaPo]
WHAT DO YOU MEAN, 'SMALL'?
About 2.5 percent of "small businesses" would get hit by Geithner's tax proposal. [TaxVox]
The research and development tax credit is endangered. [WSJ]
THE INVISIBLE, PILFERING HAND
Health care and other benefit costs are still stealing your raise. [WSJ]
PERSONAL, AND BUSINESS
My favorite baseball player just bought the Texas Rangers. [ESPN]