Democrats’ “Mom & Pop Paycut” is a Small Business Surtax on America’s Small Business Owners

Discussion in 'Political Opinions & Beliefs' started by XXJefferson#51, Jul 22, 2022.

  1. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    Democrats aren't "closing loopholes" but expanding a tax that will cripple our economy and harm Main Street business owners, while putting billionaires over bartenders.
    After failing to reach consensus on a $5 trillion tax-and-spend spree, Democrats are now looking to pass a supposedly “slimmed-down” version of Build Back Better, funded by a tax on small businesses that is little more than a “Mom & Pop Paycut.” While Democrats claim they are merely “closing loopholes,” this is an expansion of a small business tax that will cripple our economy and harm Main Street business owners who employ nearly half of the American workforce…


    …Democrats’ “Mom & Pop Paycut” is a penalty on running a small business

    • Democrats’ newest tax increase (the so-called “Net Investment Income Tax” or “NIIT”) would hit only “sweat-equity” owners of small and family-owned businesses, commonly known as the “Mom & Pop” shops in our communities.
    • Billionaire “passive” investors avoid higher tax bills, while the “active” owner-operator of a salon or electrical supply store pays more — putting billionaires over bartenders.
    • In total, Democrats would add $252 billion in new taxes on America’s family-owned businesses that fought to stay open during COVID and now struggle to find workers and supplies in Biden’s broken economy.
    Owner-operator small businesses are the cornerstone of our economy

    • 75 percent of small businesses are organized as S corporations, partnerships, or sole proprietors—and all are in-scope of the new tax.
    • The sector employs 52 million Americans, 42 percent of the workforce….




    • read more: https://gop-waysandmeans.house.gov/...ess-surtax-on-americas-small-business-owners/


    • democrats are out to protect the bicoastal elites and billionaire class that is their base yet again. They are targeting small mom and pop family businesses and your local shopkeepers and their employees with economy killing tax increases. The same that they determined non essential and closed down and now can’t find enough employees and supply.
     
    RodB and Eleuthera like this.
  2. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    Around 60% of small businesses employing close to half of America’s workforce would be negatively impacted by this if it were to become law. It’s as if blue politicians think that America’s small independent businesses weren’t hurt bad enough by covid lockdowns and various mandates so they are back to hit them again.
     
    Last edited: Jul 22, 2022
    Eleuthera and FatBack like this.
  3. Chrizton

    Chrizton Well-Known Member

    Joined:
    Aug 4, 2020
    Messages:
    8,255
    Likes Received:
    4,082
    Trophy Points:
    113
    If mom and pop are dropping $250K a year taxable income, they can afford the 3% tax
     
    Quantum Nerd likes this.
  4. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    First of all few family businesses generate that kind of income post business expenses, inventory, and wages/benefits are paid out. Most are still hurting from the covid lockdowns and post initial lockdown mandates and limits on business, keeping employees, and finding inventory on a timely and cost basis. Biden lied and said no one who made under 400k would see a tax increase.
     
  5. DentalFloss

    DentalFloss Well-Known Member

    Joined:
    Jan 7, 2013
    Messages:
    11,701
    Likes Received:
    3,453
    Trophy Points:
    113
    Behold, the smell of jealousy.
     
  6. Bullseye

    Bullseye Well-Known Member

    Joined:
    Feb 7, 2021
    Messages:
    14,526
    Likes Received:
    12,397
    Trophy Points:
    113
    Gender:
    Male
    WE need a constitutional amendment that forbids government from add new taxes without repealing equivalent ones.
     
  7. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    Envy, covetousness, jealousy, greed are among the motivating factors along with power and control that are the motivations behind tax proposals like this
     
    Eleuthera likes this.
  8. ButterBalls

    ButterBalls Well-Known Member

    Joined:
    Dec 2, 2016
    Messages:
    54,190
    Likes Received:
    40,697
    Trophy Points:
    113
    All part of the great reset and the socializing of America.. Government control of all business, housing, transportation, retail, China here we come ;)
     
    Eleuthera and XXJefferson#51 like this.
  9. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    You got that all exactly right! Well said!
     
    Eleuthera likes this.
  10. Chrizton

    Chrizton Well-Known Member

    Joined:
    Aug 4, 2020
    Messages:
    8,255
    Likes Received:
    4,082
    Trophy Points:
    113
    Nope. It is just common sense. If they are maxed out of having to contribute to social security then they can afford the 4ish percent. They are still walking away 2% better.
     
  11. Chrizton

    Chrizton Well-Known Member

    Joined:
    Aug 4, 2020
    Messages:
    8,255
    Likes Received:
    4,082
    Trophy Points:
    113
    If "few" will see it, then why get upset about it?
     
  12. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    Because like all government tax increases, far more than allegedly targeted end up getting stuck paying them. We need to leave small business alone when it comes to more taxes and regulations.
     
  13. doombug

    doombug Well-Known Member

    Joined:
    May 19, 2012
    Messages:
    56,871
    Likes Received:
    22,781
    Trophy Points:
    113
    Sure, after they layoff some folks.
     
    Last edited: Jul 23, 2022
    XXJefferson#51 likes this.
  14. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    2% better than what? They are better off leaving well enough alone and leaving things as is now.
     
  15. RodB

    RodB Well-Known Member Past Donor

    Joined:
    Apr 29, 2015
    Messages:
    23,127
    Likes Received:
    11,648
    Trophy Points:
    113
    Gender:
    Male
    • Small businesses and entrepreneurs are the bane of totalitarian socialists, aka Democrats.
     
    XXJefferson#51 likes this.
  16. cd8ed

    cd8ed Well-Known Member Past Donor

    Joined:
    Jul 19, 2011
    Messages:
    43,521
    Likes Received:
    35,064
    Trophy Points:
    113
    Gender:
    Male
    If anyone is interested in what is actually happing and not the right wing lies and propaganda

    https://www.stinson.com/newsroom-pu...e-tax-increase-on-sales-of-private-businesses
    Under the act, the expanded NIIT would apply to all income earned by an individual, unless such income is either taxable wages or subject to the self-employment tax. (Note: The expanded NIIT would apply to individuals filing a joint return and having adjusted gross income over $500,000, or single individuals having adjusted gross income over $400,000.) None of the items listed in the preceding paragraph is subject to the self-employment tax, so under the act, these items would now be subject to the tax increase.

    In sum, the expanded NIIT would impose a new 3.8% tax on (1) most income allocated to an S corporation shareholder and (2) gain from the sale of the interests in, or the assets of, any private business taxed as an S corporation or a partnership (all effective January 1, 2022) provided the owners exceed the adjusted gross income thresholds in the prior paragraph.
     
  17. RodB

    RodB Well-Known Member Past Donor

    Joined:
    Apr 29, 2015
    Messages:
    23,127
    Likes Received:
    11,648
    Trophy Points:
    113
    Gender:
    Male
    Is 3.8% added to the current 3%, or is 0.8% added to the 3%? ​
     
  18. cd8ed

    cd8ed Well-Known Member Past Donor

    Joined:
    Jul 19, 2011
    Messages:
    43,521
    Likes Received:
    35,064
    Trophy Points:
    113
    Gender:
    Male
    From reading at a few places it seems to be the new rate is 3.8% so it would be 0.8% on top of the current — it would mostly just be expanding the tax.
     
  19. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    It will harm small businesses and family farms and thus their employees and their customers who will help pay for it. Also there’s the legal issue of it being a retroactive tax. It’s pure stupidity to even think of this or advocate for it when we are in a recession.
     
    RodB likes this.
  20. cd8ed

    cd8ed Well-Known Member Past Donor

    Joined:
    Jul 19, 2011
    Messages:
    43,521
    Likes Received:
    35,064
    Trophy Points:
    113
    Gender:
    Male
    If a small business is making 500k in self employment income (this is gross profits not net receipts) they have no reason to have such a deduction. All deductions need to be removed above a certain income threshold. Our company has made above that mark twice since we have been open and I would have have been happy to pay an additional tax — if we do so again I will be happy to pay it then.

    Someone has to pay down this debt that has been accrued from wasteful spending over the current and prior administrations and it isn’t going to be the people living paycheck to paycheck.

    upload_2022-7-23_18-51-47.png
     
  21. XXJefferson#51

    XXJefferson#51 Banned

    Joined:
    May 29, 2017
    Messages:
    16,405
    Likes Received:
    14,888
    Trophy Points:
    113
    Gender:
    Male
    We pay down the debt by cutting tax rates and regulations to spur growth so that the rates bring in more revenues than the higher rates before them did. Kennedy, Reagan, Bush 43, and Trump all grew federal tax revenues long term after tax cuts. The key to reducing deficits and paying down debts is to regulate federal spending to below inflation and population growth numbers and do actual real spending cuts in some places.
     
  22. cd8ed

    cd8ed Well-Known Member Past Donor

    Joined:
    Jul 19, 2011
    Messages:
    43,521
    Likes Received:
    35,064
    Trophy Points:
    113
    Gender:
    Male
    That isn’t true in many cases however, the 2017 ones failed to do this and may have even amplified the situation Americans currently find themselves in:
    https://www.brookings.edu/policy202...cut-the-tax-cuts-and-jobs-act-pay-for-itself/
     
  23. DentalFloss

    DentalFloss Well-Known Member

    Joined:
    Jan 7, 2013
    Messages:
    11,701
    Likes Received:
    3,453
    Trophy Points:
    113
    Common sense? More like common theft, and justified by people like you who wish you were in their shoes, so dragging them down makes you feel better about yourself.

    Guess what? I'm not in their shoes either, and with my (relatively) new disability, may never be, but I don't form my opinions on policy decisions on how they would affect me. I also object to estate taxes, but since both my parents are deceased without hitting the threshold, and I'm unlikely to hit it myself (and don't have any kids to leave anything to, anyway), my objection to that is not for personal reasons, either.
     
  24. doombug

    doombug Well-Known Member

    Joined:
    May 19, 2012
    Messages:
    56,871
    Likes Received:
    22,781
    Trophy Points:
    113
    "Mom and Pop" won't pay more they will just pass it on the the customer.
     
  25. RodB

    RodB Well-Known Member Past Donor

    Joined:
    Apr 29, 2015
    Messages:
    23,127
    Likes Received:
    11,648
    Trophy Points:
    113
    Gender:
    Male
    This makes little sense. It says that because the government doesn't charge this or that other taxes they should be happy to pay NIIT. That's like telling a felon who has just been sentenced to 2 years for robbery that he should be happy because he was not sentenced to 10 year for a crime he didn't commit.
     

Share This Page