Obamunism at work:
America’s jobs growth engine is being choked to death.
A record 25 percent increase in the taxes against US small businesses — from costs associated with new health care law, to an increased Medicare tax, increased capital gains taxes and higher state and city taxes — is repealing any ability of these entrepreneurs to add jobs to their payroll.
And the numbers for New York’s small- to medium-sized business are just as harrowing.
By one estimate, the effective tax rate on the 26 million small businesses across the country — which in the past have accounted for more than half of the job growth in the US — has jumped to 50 percent from 40 percent, sucking valuable cash from the businesses.
And here’s the really bad news: the Bush tax cuts expire on December 31st and so there will be an even larger burden on small businesses in 2011 (that is taxes on “the rich” in liberal-speak…of course, “the rich” are never people like George Soros…but they are owners of small and mid-sized businesses). One friend of mine pretty wise in these things figures that part of the reason we’re seeing a bit of economic growth in 2010 is because businesses are front-loading as much business activity as they can in to 2010 in order to avoid paying higher taxes on it in 2011…but the down side there is that 2011 activity will then be much, much less.
We’re in a really bad way and unless President Obama swiftly changes course – by, say, renewing the Bush tax cuts – then we’re going to have a very rough ride.
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