The Republicans keep trying to come up with arguments why Congress should not end the Bush-era tax breaks for the rich. One line that keeps getting thrown out is that ending the tax cut will hurt small business by raising taxes on small business owners.
Finally, that argument can be laid to rest.
Check out this analysis from Think Progress Wonk Room, which shows that the Republican line just doesn’t hold water. In the analysis, Michael Linden, associate director of tax and budget policy at the Center for American Progress Action Fund, points out that 98 percent of small business owners won’t be affected if the tax is eliminated. Even the report the Republicans use to make their argument actually refutes it.
As Linden says:
So, what we are really talking about here is extremely wealthy people who claim millions and millions of dollars in income as “business income” and have no relationship at all to actual small businesses.
Read the entire post here.