Obama’s New Defecit Reduction Plan: 1.5 Trillion in New Taxes
President Obama revealed his new plan to cut the defecit Monday at the White House, repeating his oft-used mantra about everyon paying their fare share of taxes…to the tune of 1.5 trillion more.
For couples over 250k a year, it will involve significant increases in money paid to the Feds. He also wants to get rid of financial-tax incentives for weathier Americans (business owners) as well as deep cuts in Medicaid. Obama has refused to sign off on any budget cut plans that do not include tax increases. Republicans quickly countered by saying that veto threats, a massive tax hike and other similar measures will not stimulate the economy or produce job growth. It is a well known fact that when faced with potential tax increases and penalties from higher taxes, investors hang on to their money. Investors are one of the primary sources of job growth in our economy, and small businesses make up the majority of jobs. 44% of the total US private payroll comes from small businesses, and 64% of new jobs over the last 15 years have been from small business. The Small Business Administration considers a business to be small if they employ less than 1500 people on down to as few as 5 or 10. Kiplinger reports tax plans Obama has in store, including the ones just unveiled Monday, would have generally negative effects on the economy and small business.