How much do the Bush tax cuts help small businesses?

I’ve started to read Ezra Klein more.

Q: Republicans keep fighting for the Bush tax cuts with a talking point about small business owners filing as individuals. I’ve heard 50 and 75% quoted as the number of $250k filers that are actually small businesses. Any truth to this? It seems to be their strongest case against letting the cuts expire.

A: As far as I can tell, this argument originated with Grover Norquist in this column. Norquist cites IRS data to say that two-thirds of income from sole proprietorships, partnerships and S corporations was reported by filers making over $250,000 a year.

Although true, this is almost totally irrelevant. Norquist looks at the proportion of income, not filers, which inevitably results in a bigger portion for high-earners. We want to know how many small business owners this would affect, not how much small business income.

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  1. pnh’s avatar

    I like his conclusion. I hope he’s on some prominent Democrats’ reading lists and maybe they change the message to reflect it. Bush gave Dems a great way to solidify the point. Bush identified himself as a small business owner. That certainly wrecks the image of struggling mom/pop businesses whenever we hear the words “small business.”

    I think something along the line of “Mama Rose won’t see her taxes go up on her diner — neither will the owner of Hebert’s Lawn Services — but George Bush will no longer pay a smaller percentage of his income than Mama Rose and Tom Hebert.”

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    1. Timbuk3’s avatar

      What I like about Ezra is, he actually does some research when he has a question about something. Conservatives worst nightmare; someone who doesn’t buy the bullshit they constantly peddle.

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    2. Uniformityville_horror’s avatar

      How nice to see you!

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      1. pnh’s avatar

        Have I been “silent” that long? I’ve been lurking — I’ve just been overwhelmingly busy/frustrated to the point that I was too tired to try to communicate.

        My original landlord died last year and the daughter that’s going to inherit this house is also the manager of his estate — so — she’s doing what I call taking care of her father’s unfinished business. While he had some qualities that made him a blessing at many times — when it came to repair and maintenance — he was a poor landlord.

        Bless her heart — she’s trying to fix up all the houses before probating the will and she’s trying to do it as cheaply as possible. She’s not at all knowledgeable about this stuff — but she’s essentially acting as her own contractor/foreman over the people her father would get to assist him. He didn’t do much of the required work — but he did know how to do it. So — she’s actually trying to do all the work he wouldn’t do — but she doesn’t know how.

        She and mostly one guy were here all day everyday for about a month. The short version of the nightmare requires one to keep in mind I said they were here about a month — as in indication of how much work they did. All of the work was inside the house. I think the beginning is enough for somebody to understand just how disorganized and crazy it was — as well as how “pretty” the results were.

        For about 5 minutes I was happy, happy, joy, joy — instead of putting in new carpets — she decided to go with wood floors. That is my first choice. I love wood floors for the look as well as their cleanliness relative to carpet.

        The nightmare began when she decided that the long list of repairs — again to the inside of the house — should start with ripping up all the carpets and sanding the floors…

        All of them in one day to avoid the expense of renting a commercial sander for more than one day. All of my things were jammed into small spaces and then knocked around as the only available spaces were places we needed to be able to enter/pass through. It’s a mess. They left last week. It’s going to take a while for me to put this mess back in order.

        It gets worse. My happy, happy, joy, joy faded upon learning no 2 on that very long list was applying the finish to all of the floors. I don’t know how she didn’t know the end result of finishing floors immediately before making all those repairs, painting, etc would result in floors that looked like they needed to be refinished. She gave each floor only overnight drying time before trampling all over it.

        A small thing that’s also very telling about the craziness and the quality of the work. I noticed a very odd thing. Her hired help painted the cord to my stove — almost the entire thing. I don’t know why it didn’t occur to him to just unplug it and take the cord out of the way. But get this. As I noticed my cord covered in paint — I noticed that he had only painted the rather small wall area on the rear side of the stove — he hadn’t painted the wall in back or adjacent wall on the other side. My cord had more paint on it than the wall area did.

        I don’t know how I survived the physical work I had to do to try to protect my things from them or the stress — but thank God — I’m still here. I’m still trying to fight off a stubborn case of bronchitis caused by them mixing up all kinds of fumes in here at once — but — I think I’ll live. (Yes, they got ill — too — but not living here — they didn’t have as much exposure — so they didn’t get quite as ill. The boys went to my daughter’s for a while — and then to my sister’s.)

        Anyway — I was lurking — so you weren’t seeing me but I was seeing you. Still — it’s always nice to see you — too.

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        1. Uniformityville_horror’s avatar

          Oh my, I was married to a dry-waller for a while. We owned a business.
          First Spouse graduated with a BS in business with a .375 in five semesters!! He was headed for Harvard for his MBA when he bought the dry wall business. First years out, our loan was paid off and we were making good money. His mistake was letting the developers/builders run on his money, not their own.

          It is hard, having to live with that. Oh d, what you must have gone thru!

          If you need me for anything, just call.

          You are in my heart.

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