Phony tears over taxes on small businesses
Republicans have switched from shedding crocodile tears over the effects of the so-called death tax on small farmers to shedding crocodile tears over the effects on small businesses of letting the Bush tax cuts for the rich expire.
Kevin Drum has the story HERE.
A few excerpts:
Back in the day, one of the key Republican arguments against the estate tax was that it forced hardworking, salt-of-the-earth children of small farmers to sell the family plot in order to pay their taxes after dad died. It was a sad story, but with one problem: no one could find even a single small farmer who had been forced to liquidate in order to satisfy Uncle Sam’s voracious maw. Even the American Farm Bureau Federation was eventually forced to admit that it couldn’t come up with a single example…
Good times. Today, though, we’re getting a rerun. The subject at hand is the Bush tax cuts, and the question is who exactly will get hurt if we go ahead and keep the cuts intact for middle income earners but let them expire for the rich. The obvious answer is, “the rich,” but it turns out that, just as there are small farmers begging for our sympathy, there are small rich too: namely an alleged army of hardworking, salt-of-the-earth small business owners who would also end up paying higher tax rates.
Letting Bush’s tax cuts for the rich expire affects only a tiny number of small businesses; it doesn’t affect them very much; and it generates revenues of $678 billion. If the only thing you care about is keeping taxes low for rich people, you won’t be convinced. For the rest of us, it’s a no-brainer.