Mr. Obama's Small-Business Tax Hike
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Howard Kurtz wrote an analysis ["McCain Paints Obama as a Tax Hound," Aug. 9] that dismissed claims, made in a campaign ad for Sen. John McCain, that Sen. Barack Obama would raise taxes on small business.
According to the latest Internal Revenue Service data, $706 billion of pass-through business income was reported in 2006. Of this, two-thirds was earned in households making more than $250,000 -- households on which Obama has said he will raise taxes.
If raising the tax rate on two-thirds of small-business income isn't a tax hike on small business, what is?
The tax rate on two-thirds of small-business income would skyrocket under the Obama plan. The current tax rate on this income is 37.9 percent. The Obama plan, thanks to uncapping the Social Security tax base, would shoot this small-business rate all the way up to a Carter-level 54.9 percent.
RYAN ELLIS
Tax Policy Director
Americans for Tax Reform
Washington
