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Question of the week: Do you support the President raising taxes on 1.2 million small business owners?

Posted by Randy | July 13, 2012

This week, President Obama called for a one-year extension of Bush-era tax cuts for households earning less than $250,000 a year, and individuals earning less than $200,000, while allowing taxes to rise for the rest of American families and small business owners.

If no action is taken by January 1, 2013, a 2011 Treasury Department study estimates that 1.2 million Americans, or 28% of the 4.3 million small businesses earning more than $250,000, would be subject to this tax increase.

Curtis Dubay from The Heritage Foundation estimates that allowing these tax cuts to expire would equate to a $494 billion one-year tax increase.

The Wall Street Journal reports, “Obama Intensifies Tax Fight.”

Question of the week: Do you support the President raising taxes on 1.2 million small business owners?

( ) No, all Bush-era tax cuts should be extended for everyone.

( ) No, all Bush-era tax cuts should expire for everyone.

( ) Yes, taxes should increase for households earning more than $250,000 and individuals earning more than $200,000, including 28% of small business owners.

( ) I am not sure.

( ) Other, share your thoughts on our blog.

Take the poll here.

Find the results of last week’s instaPoll here.

Comments

Users are solely responsible for the opinions they post here and their comments do not necessarily reflect the views of Congressman Forbes.

Thomas G commented on 7/13/2012

I absolutely support the president's proposal to hold the line on tax rates for 98% of the American people and allow the TEMPORARY cuts given to the top 2% to expire as the republican party agreed under president Bush and as representative Forbes agreed as well. I expect the congressman to honor that commitment and not to flip flop and continue to protect millionaires and billionaires. I do not expect the congressman to hold the 98% of the public hostage in order to protect millionaires and billionaires and I expect the congressman's phone to ring off the hook if he fails along with the republican leadership to act for the 98%. It should be noted that everyone in the nation, including the top percent would see the line held up to the 250,000 threshold, so I do hope that the congressman will not insult the intelligence of the people by implying that the 98% would be unfairly benefiting from this change. But you wait, soon there will be others that come out of the blue spewing the garbage coming from talk radio. All voters owe it to themselves to research the details here and refuse to accept anymore childish spin from our representatives. It has indeed become bizarre. A great deal has already been done to cut small business taxes, over a dozen times already and where are the jobs? It's just a big lie and every time the people hear it they know they are being lied too. Already we have seen our congressman vote to increase the deficit by 125 billion dollars in CBO estimates with the repeal the Affordable Care Act. I am unwilling to offer my support for congressman Forbes to borrow even more money to fund tax cut EXTENSIONS for millionaires and billionaires who have not created the jobs. What an absurd claim to make when the facts overwhelming discredit that assumption. I expect congressman Forbes to once again abandon the middle class. I hope I'm wrong and I hope everyone in the district will rise up and express support for the middle class. That is the only way this congress is ever going to listen.
Kathleen Rosa commented on 7/14/2012

Both sides agree that tax cuts should continue for the middle class. Why not vote on that issue now and the tax cuts for the wealthy can be debated? The Republicans need to start putting their constituents first instead of acting like a bunch of babies! Also, enough with the "job creators" argument As a business owner, I hire people based on the number of customers I have to handle, not on the tax rate. Putting more money in the hands of consumers, means more business for me and more hiring on my part.
Nancy Dodson commented on 7/14/2012

I do NOT think that anyone who makes a million dollars a year or more should continue to get tax breaks to create jobs. That is another Republican fallacy. George W. Bush gave historic tax breaks to the "job creators". And what happened? They created millions of jobs. The only problem was they created them overseas and not here! That Republican plan is getting so old. It didn't work and never has. Any business who takes their business overseas should be taxed so heavily that they will fly back here , be patriotic for once, and put OUR people to work. I wish President Obama would make the law for those who earn over a million dollars and that would take care of the argument that we were hurting small business owners. Every time Republicans are in power they spout the same nonsense and every time they leave our country in worse shape than it was when they took office. We should soon learn and stop buying their nonsense. By the way, I'm a registered Republican but no longer vote for them. They've gone too far off the rails for me! They want small government and then try to take control of women's bodies. They are total hypocrites. And now they prefer tax breaks for millionaires and take away programs for the poor and the sick. Why anyone but millionaires would vote for them is beyond me. I guess people like to vote against their own best interests.
Andrew Lerch commented on 7/14/2012

Stop playing games with taxes and the tax code.
Asif Ayub commented on 7/14/2012

There should be an overhaul of the present complicated tax code. If there is a graduated flat tax everybody will have to pay their share fair. In the interim taxes on income over $250,000 should go up but for small businesses with 10 or more employees the level should be raised to $500,000.
Peter Loy commented on 7/14/2012

Dear James: I use your first name instead of your official Congressional title because you and your cronies in Congress have made this great nation the laughing stock of the world with your dog and pony show theatrics. I, like the majority of this country have lost all respect for the charades perpetrated by Your Antics on this great nation. 10 % approval Rating. You all should have your pictures plastered in the post offices as thieves and robbers for taking your Congressional salaries while nailing the coffin shut on this once great nation. Blame the President, blame the Democrats, blame the Republicans blame the weather. The solution is so simple. Just look in the mirror and ask yourself when I sit in that pew Sunday and sing Amazing Graze How Sweet Thou Art who is to blame but me.
James Stark commented on 7/14/2012

You have misrepresented the impact of letting the Bush tax cuts for those making over $250K expire. As someone who made way over that and ran a small business with a subchapter S tax return, decisions on hiring had NOTHING to do with my personal income tax exposure. I hired people when I wanted to expand or invest in my business. Frankly I didn't notice paying 33, 36 or 40% as the top tax bracket, but the budget deficit sure did.
Kitte Ranno commented on 7/14/2012

Agree that there needs to be some type of tax increase (as well as tax reform, but that is being kicked down the road by Congress because it is too hard!), but who determined the $200,000 per individual/$250,000 annual income threshold per family? As Senator Schumer stated this week, there are working families in high cost of living areas who make this amount and cannot in anyway be considered rich. This income threshold is discriminating against families where both adults (i.e., the woman) works! A much more fair approach would be to give each working adult the same credit and consider raising the income level per family to $400,000. OBTW - The reason that we will just meet the $250K income threshold is because we have been working 40+ years to get here, including many family separations due to military deployments.
Jerry Parr commented on 7/14/2012

keep the tax rates -- stop calling them "cuts", and stop using the (now) pejorative appellation "Bush-era"... they are the existing tax rates! Any change proposed by the Administration must be seen for what it is -- a socialist attack on our political/economic system. Look at the travesty: my Social Security (portions of which represent money I contributed) is subject to taxation... so is my military retirement. But money from the gummint to "the poor" is not subject to taxation as income! When all pay tax on their incomes (half of them don't pay anything), then the system will be more just. Until then, leave the rates alone, and express some gratitude to "the rich" for paying such a large percentage of the income tax burden!
Gary Sneed commented on 7/14/2012

I think that the old tax relief should remain the same for single and married families that make less than 200k for singles and 250k for married. As far as small business owners this depends how much profit they make. Who determines what a small business owner is? If a small business owner makes more than 500k profit his taxes should go up.
Jim Lynch commented on 7/14/2012

I don't agree with the premise of the question, but having said that, the Bush43 tax cuts were unwise at the time and even more so now. They should expire in their totality. But if that's not politically feasible, then the President's plan is the next best thing. When the tax cuts were enacted I was dismayed. I had hopes that with the budget surplues that we were running, that maybe we could start to chip away at the debt we're leaving to our children and grand-children. Instead we cut taxes, started two un-paid for wars, and pass an un-paid for Medicare drug provision. Our debt ballooned surprising to no one. Some fiscal responsibility.
Jim Lynch commented on 7/14/2012

The whole of the Bush43 tax cuts should expire. If that isn't politically possible, then the President's plan is the next best thing.
L Kenyon commented on 7/14/2012

The question itself is so slanted that it's almost impossible to answer accurately in one word. I'm curious as to whether you and your staff really believe that the general population is too ignorant to realize that.
Jason N commented on 7/14/2012

Didn't we just have a tax small business with the healthcare mandate? Is this another one so soon? How about taxing the idlish, devilish banking system that got us into this mountainous economic crisis (at this point I don't have to name names).
Gregg J commented on 7/14/2012

To continue giving tax breaks to corporations and wealthy families while the nation buckles under 15+ trillion dollars of debt borders on treason. The debt requires both cuts on the spending side and an increase on the revenue side. Congress stop posturing and get this sorted out before it’s too late.
John Collick commented on 7/14/2012

The Bush era tax cuts should be made permanent until a new tax system, with everyone paying the same rates (or consumption tax), is put into place.
Gary Pittenger commented on 7/14/2012

This is another voter who is tired of your spin on our current situation. If the GOP hadn't been so obstructive for the last 2 years much could have been accomplished. Instead we get pointless votes against the health care plan and nothing done about jobs or the economy. Do your job rather than pander to the wealthy,
Derry Pence commented on 7/14/2012

I believe that the current situation is a purely political maneuver to make the "middle class" feel good while making the "big, bad" guys look like the evil Darth Vader. The budget process is broken beyond tax cuts. It would be nice to see some "leadership" is getting to a solution that will work rather than just throwing bones to select segments of our society so that they will vote for you. A tax cut is really a redefinition of the tax rate - is the current rate appropriate and will allow us to construct a budget that is closer to being balanced? If not, do we need to adjust the tax rate? Right now an increase in the tax rate is viewed as the 99% vs. the 1% - I am not a part of the 1% but they are already making a substantial contribution to our general budget. Do we have a problem with entitlement? I am not talking about programs I am talking about attitude - is everyone entitled to the "good" life or do they need to take responsibility for their role as a citizen? Thanks
bill ries-knight commented on 7/14/2012

You are confusing the issue. If the Bush era tax cuts were permanent, they would never expire, and we would not face the issue. The Bush tax cuts had sunset provisions that made them expire at the end of 2010, since otherwise they would fall under the Byrd Rule. Whether to renew the lowered rates and how became the subject of extended political debate, which was resolved during the presidency of Barack Obama by a two-year extension that was part of a larger tax and economic package, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. What happened was Pres Bush II created a tax cut by executive order to the congress, which they passed, to make the population happier. He then went on to create a war scenario we are just pulling out of without creating a financial offset to pay for it. what is now happening is we have to pay the piper for the Bush II wars and it is being done on an ability to pay basis. it is not perfect, but it makes more sense than continuing a scenario whereby taxes are artificially altered, distorting the budget.
Jason N commented on 7/14/2012

Sounds like another tax on small business owners on top of the the healthcare tax not even 30 days old yet, unbelievable. How about a tax on the idle, devilish banking system that landed us on the deck of this unpayable economic transgression?
Crystal Peabody commented on 7/14/2012

Forgive me if I sound ignorant, but I need some clarification. Why do people see it necessary for the wealthier citizens and small businesses to pay out more taxes then what they already do. You are pretty much penalizing them for doing well.
Annamaria Pencola commented on 7/15/2012

Bush KNEW we could not sustain these cuts. This is why they were temporary. Things are getting better so we should start with people who can afford it most and go to old rate. Then, work on the rest of taxes. We are currently enjoying the lowest taxes in over 30 years. LOOK this up on the IRS website if you question this.) Overhaul the tax code and make it FAIR.
Jon Langejans commented on 7/15/2012

I've seen it posted a few times here. "Fare Tax" . No more gaps or squeeze points for anyone to squeeze through and all are taxed fairly. Then spend within your income. It's a simple chore private citizens have been practicing since Independence Day.
D.W. Johnson commented on 7/15/2012

David G we already have a "flat tax" you just have to work in the Black market all the BM pays is sales tax they do not have tax increases like the rest of society a fair tax would be better the lowest paid in society needs to "pay tax" as well so when "taxes" rise they feel it too it would be much harder for whatever party in power was to "bribe" voters then
Angela Granger commented on 7/15/2012

As a former certified tax preparer, the tax laws need to be revamped entirely. It's used as a crutch to avoid addressing the fact that the US government has a spending problem and tax credits are just a means of pandering to voter blocs. Simplify the tax laws. It eliminates loopholes and disincentivizes the fact that people currently on the lowest tax brackets or collecting social security restrict their working to avoid the tax hit that comes with going up to the next bracket. Personally I would suggest a flat tax rate on income no ceiling and a property tax on additional houses, vehicles electronics etc. over a set value.
Anne Arnold commented on 7/15/2012

We need an overhaul of the tax system, simplifying it so that it doesn't take lawyers and accountants to figure out the average family's taxes. In the meantime the deficit has to be addressed. No one wants an increase in taxes. Why is the President and Congress so fixed on the number $250,000.00. If this is the income amount that will affect so many small businesses, then raise the amount to $500,000.00 or 1 million dollars. The president is always condemning millionaires and billionaires. Take the wind out of his sails and put that on the table. Then entitlements can be addressed with full daylight shining on the cuts, not the gloom and doom with which some would want to scare us. I currently receive Social security and Medicare. I would have been satisfied keeping my Blue Cross as a primary insurance and pay the co-pays. This may be one way to address the Medicare problem.
darryll johnson commented on 7/15/2012

i support a fair tax for everyone. no tax breaks for oil, no off-shore accounts. america is sinking in debt. has to stop.
Thomas G commented on 7/15/2012

I am curious why when Mitt Romney was running the Olympics in 2002 that the official beret worn by our athletes was made in Canada? What this too a scheme to avoid some sort of tax? I am very skeptical that serious pressure is being placed on small business owners, who have already had taxes cut numerous times and it is greed that is preventing owners from hiring, or simply they have become lazy walking out on American workers just like they did to make the berets in Canada under Romney's watch.
Carlton Lowry commented on 7/15/2012

Hell NO! These are NOT tax cuts tha President Bush put in place in the first place. I can't understand why people keep calling them that. I feel it's necessary to correct people when they state that they are tax cuts. It was a lowering of the percentage across the board, which is probably why so many in this country are NOT paying their fair share. There are too many freloaders on the system now. It needs to be re organized. I'll step down from my soap box now.
john duck commented on 7/16/2012

I agree to raise tax for individual who makes above 200000 a year but not small business
John REITH commented on 7/16/2012

America spent money like a drunk on Saturday night on two "wars" for more than ten years without raising any funds to pay for it all. No war bond campaign, no war stamps, nothing like WWII. And then somewhere along the line TEMPORARY tax cuts were enacted. Notice the word TEMPORARY in the whole thing? So how why do we keep going on and on about it. Let them expire. What ever it is it isn't a new tax, it is the end of a tax holiday. And Oh by the way why in the world, when we hear that Social Security is in trouble does the executive and legislative branches push through another TEMPORARY cut in collecting funds that go into finianching that program? When did our government become a clearing house for ponzi schemes? Someone upset about Olympic "uniforms" being made in China? Heck! China owns most of our debt, they are the majority stock holder in America. Who let that happen? Who committed America to spending itself into this kind of debt? Think about that and stop playing the blame game. Suck it up and fix it. WE are in a mess, and you, Congress and the Executive, are in charge of not only making the mess, but of cleaning it up. You all got US here, fix it. There is no easy button for this, it is a hard and dirty job. It is your job. That is why you are there drawing your salary. You have a job to do, you have a duty to do. Make it happen.
Damon DeSue commented on 7/16/2012

Although I think a tax increase is warranted, I believe Congress should negotiate a higher threshold (e.g. $1,000,000).
Walter Barrett commented on 7/16/2012

Our history proves taxes have always been an issue, Taxation without Representation! Individuals have lost property and belongings due to the greed of government, GLUTTONY. Grant you, taxes are required to keep this country operating as a sole entity. However, we continue accepting monies from countries such as China which reduces our position as a leading country, as we were once known as. My question is WHY do we need this money? What is the breakdown of this money requirement? Is this money truly necessary? I go back to my first question; WHY?
Mrs. Davis commented on 7/16/2012

The issue that I have is that there are no concessions for unemployed individuals who have to make early withdrawals from their 401k or retirement savings plan(s) to pay their bills. If the individual is unemployed, the government should exempt them from the 10% penalty to withdraw money early so they can continue to responsibly pay their financial obligations, like school loans and household bills. I have no problem with them taxing the withdrawal if applicable; but you could cut them a break and not apply the 10% penalty, especially for those that can no longer get unemployment benefits from the state or federal government.
Thomas G commented on 7/16/2012

It's obvious here congessman Forbes, you are irritating the electorate with the extreme positions you have taken that are far outside main street views. Just examine the passion in these blog posts. Business owners want customers first and if one business owner can't grow then someone else will step in and make up the difference. You have to STOP sir of expecting the middle class to continue to feed the pockets of the wealthy in America. Your positions have HARMED this country for the twelve years you have been in Washington. Are the constitutents better off with you as their congressman? I don't think so, with the unpaid wars you helped push us into, the worst financial collapse since the depression, the highest cost of gas under Bush the nation has ever seen, millions of new illegal immigrants, run away health care costs you did nothing about, total failure to create jobs, record budget busting, not a single balanced budget since you went to congress! You voted to shove this nation into its first ever default, stood by and refused to assist with rescuing the auto industry, accomplished nothing with respect to the widening trade gap with China and the entire area has seen the Navy fall apart since you have represented us sir. You have abandoned the middle class, embarrassed the district the the contempt vote of Attorney General Holder and proposed spending millions of dollars to give all tax payers a PAPER receipt. It is beyond me how you can defend continuing to spend billions of dollars in subsidies for the oil and gas industry. I think most shameful of all is sitting on the judiciary committee and doing NOTHING to look into the obvious attempts by republican leaders in the states to suppress the vote. The question is clear...are the constituents better off with you as their congressman for the last twelve years....I don't think so, the disconnect has become irreparable given the abandonment of the middle class.
Nancy Dodson commented on 7/16/2012

I'm having a hard time with some of the posters on here who seem to have so much sympathy for the wealthy and think taxes should be raised equally on low wage earners, too. When you have low wage working familes worrying about how to feed their kids and forget taking them to a doctor when they're sick and you have the wealthy just buying another mansion, yacht, or fancy car, sorry, I can't cry for billionaires. And, by the way, many huge corporations, GE is one, can't think of the others, paid absolutely no taxes last year. Now you just tell me that's fair. Another fact, large businesses and corporations are paying less taxes now then they did 30 years ago. And there are some billionaires who actually are embarrassed at the low taxes they now pay. Maybe they don't know that apparently there is a place on their tax returns where they can pay extra to the government if they so choose! Imagine that! Don't get me wrong, I don't hate the rich in any way. God bless them, but believe me if I had their money I'd gladly cough up more money. My husband and I cashed in an investment last year in the amount of just over $3,000.00 and had to pay $800.00 in income tax on it. That's a pretty hefty tax share if you ask me! All I ask is that everyone pay their fair share and also heavily tax any monies that are hidden in offshore tax shelters as well as those who take our jobs overseas. Just how much money does a millionaire or billionaire need to survive? Just askin!
Nancy Dodson commented on 7/16/2012

One other comment: Many businesses who are considered a "small business" by Republicans make millions of dollars a year. There should be a difference between a true "small business" who shouldn't be taxed the same as the very large so called "small businesses!'"
Ronnie White commented on 7/16/2012

Its high time that loop holes in tax structure be closed: as eating is a necessity of life for all, why should the taxpayer foot business expense deductions for,wining, dining, and entertainment. Also, in oil exploration investments (Big$) there are generally large windfall profits (150-500% of Big $) of which the first 25% return is tax exempt. Why? Also, I think our postal service needs overhaul as to rates offered volumes of bulk junk mail at the expense of other mail. Businesses have advantage of low cost plus that cost being tax deductible: get rid of one or the other- let them pay according to size/weight. Also health care is an oxy-moron: if you have any health issues the industry does not want you to get well; there is a conspiracy/collusion between the FDA, AMA, insurance, pharmaceutical, and other related agencies to not offer best health management plans to the individual. Over 100,000 deaths occur each year as result of prescription complications: wrong dosage, wrong prescription, dangerous side effects, wrong patient, etc. Why don't insurance and Medicare pay for alternate treatment that have no side effects (acupuncture, chiropractic, magnetic field therapy, etc) Big $$$ 1 of 5 new drugs put on the market ultimately have to be removed for public health/safety reasons. Recently I found out that the Statin I was on could be linked to my type2 diabetes so I contacted my doctor for change: my copay went from $10 to $70 for 90-day supply for new statin-less drug; although the report was verified in January about this side effect of statins, there apparently has been no effort on the FDA or pharmaceutical industry to warn the public/users of this dangerous side effect. this is seen as conflict of interest to well being of the individual such that additional treatments be required involving medical (doctor), pharmaceutical (drug), and insurance/Medicare/Medicaid $$$$.
William Branigan commented on 7/19/2012

I believe that every citizen in the United states should pay some taxes. That is what supports all of the government services and this serves the citizen. Those who do not want to support the government should not be given the right to vote. On another subject, no illegal alien should have the right to vote. There might be some merit in granting entrance in a program leading to becoming a citizen if an illegal serves in one of the military services. All illegals should be registered in some program as soon as they arrive and be required to attend some kind of classes which would lead to their gaining full citizenship. We should publish what other countries require to become citizens and how illegal citizens in those countries are treated. That information would shock the Americans.
William menefee commented on 7/20/2012

Our government is completely corrupt! Wall street has bought and paid for our politicians and they run our country. Unfortunately for the middle class the rich will keep getting richer and we the people that forged this great nation will keep getting poorer! Will Menefee.
charles dugan commented on 7/21/2012

get rid of all the freebies and bennies that congress and the president have. why do they need their own - LIFETIME! - medical plan? why do they deserve the incredible retirement plans they all get? institute strict term limits. make them use the same medical system as everyone else. make them retire on prior, private earnings, not on the back of the country. they all claim they are "serving us" - it sure feels more like extortion!
A Jackson commented on 7/25/2012

Yes,I do. The tax rate for that group under President Clinton was 39.5%. Are you trying to tell me that was a burden? The effective tax rate for most small businesses is about 27.0% when all allowable deductions are taken, which is hardly a burden for those making over $250,000. If these tax breaks for the wealthy had actually resulted in more jobs being created, you might have a case as we would be rolling in jobs. But since that isn't the case, let the rich pay their fair share -- I know I do, on my pension and Social Security benefits. I have no sympathy for those who have the wealth and cry all the way to the bank.

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