Why Obama is Wrong About Taxing Those People that Make Over $250,000

Obama wants to increase taxes on those people and companies that make over $250,000 a year. He refers to these people as "jet owners." Personally, I do not know any person who makes $250,000, but I do know several companies that make well over $250,000 and none owns a jet. What they do have is the integrity and motivation to work hard and help their fellow man by providing jobs. What happens when these small businesses have their taxes increased? Where do they get the money to pay these new taxes, especially with today's bad economy when sales are down, when people are not buying manufactured items as they once were? Who really suffers from tax increases on small businesses?

My son is employed driving a semi-truck for a local farm corporation. He hauls grain and rock. The dairy farm he works for is a small business with less than 100 employees and makes well over $250,000 a year. They do not own a jet. The owners of this farm try to not lay off anyone during hard times; they just schedule the workers less, keeping their core workers for needed tasks. They hire more workers when times are good. They do have some seasonal work, but the dairy farm and trucking business are year round businesses. If their taxes are raised, what are their alternatives? They cannot raise the rates on their milk because it is bought at a specific price. They cannot raise the trucking rates, as they will be outbid by other companies. All they can do is let their trucks sit idle and not schedule any loads for the drivers. If things get too bad, they may have to end their trucking business all together, thus several people will be without a job.

I have a niece that works for a small manufacturing company that makes tablecloths and napkins. This company also has less than 100 employees, makes over $250,000, and has no jet. She has commented that sales are down and if taxes are increased on this company it may fold, thus more people unemployed.

This is just two examples. Take these examples and multiply them by several hundred thousand. If taxes are increased on small businesses, there are sure to be more unemployed people. More unemployed people will mean less taxes being collected. Less taxes being collected, means less funding for entitlement programs, which is what the unemployed people will need. Not enough funding for entitlement programs also means the government has to borrow more money, running up our country's debt.

Obama would be better off instituting a flat tax or upping the $250,000 to several million.