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Eighteen 
LSU Fan
Member since Dec 2006
15535 posts
| Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:48 pm)
Biden said this last night and it kind of shocked me. This is not supposed to be a troll or one sided skewed question, just wondering if this is actually valid?
Is it an argument of what businesses are classified as "small" that makes this true?
This post was edited on 10/12 at 12:50 pm
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Y.A. Tittle
LSU Fan
Member since Sep 2003
44258 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:49 pm to Eighteen)
Net reported income? It's probably right.
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Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
10508 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:50 pm to Eighteen)
quote:
Biden said this last night
That is your answer right there
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BlackPawnMartyr 
Alabama Fan
Houston, TX
Member since Dec 2010
2285 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:51 pm to Kingwood Tiger)
The Woodlands > Kingwood. 
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Tiger n Miami AU83 
Auburn Fan
Miami
Member since Oct 2007
25539 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:51 pm to Eighteen)
Yep.
Sorry if you bought the GOP line about taxing the small businesses and job creators 
The GOP talking points really are funny when they start talking small business and trickle down taxes. What they mean is wealth redistribution upwards which is EXACTLY what the Bush Tax Cuts accomplished in stupendous fashion, EXACTLY as they were projected to do.
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WaveHog 
Arkansas Fan
Austin, TX
Member since May 2008
4312 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:53 pm to Eighteen)
quote:
Is it an argument of what businesses are classified as "small" that makes this true?
yes. small isn't a designation of earning amount. if the company passes through the earnings, it's classified as a "small business".
quote:
Biden said this last night and it kind of shocked me. This is not supposed to be a troll or one sided skewed question, just wondering if this is actually valid?
yes, it's true.
from WaPo: LINK
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gatorrocks 
Florida Fan
Lake Mary, FL
Member since Oct 2007
6683 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:53 pm to Tiger n Miami AU83)
quote:
small businesses and job creators
Small businesses are the job creators and they will be taxed at a higher rate to pay for Obamacare.
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stat19 
USA Fan
Member since Feb 2011
8358 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:53 pm to Eighteen)
Well Barry told us that Donald Trump is a 3%'er. So I imagine Mark Cuban is a 3% too.
I'm sure given time we could list 1000's of 3% - at least as defined by Barry's definition.
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WaveHog
Arkansas Fan
Austin, TX
Member since May 2008
4312 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:53 pm to WaveHog)
applicable quote from the WaPo article i linked:
quote:
Some of these “pass-through” companies are rather large, with revenues of more than $50 million, but they represent just a small proportion of such companies. According to calculations by Donald Marron, director of the Urban-Brookings Tax Policy Center, in 2008 such companies accounted for less than one-tenth of one percent of all returns filed — but they had 40 percent of revenues and 30 percent of all profits.
The result, according to the Joint Committee on Taxation, is that only 3 percent of all “small businesses” paying taxes would be affected by Obama’s plan to lift marginal tax rates on families making more than $250,000 and individuals making more than $200,000. (See page 25 of the JCT report.) That group — about 750,000 taxpayers — accounts for 50 percent of the estimated $1 trillion in business income reported in 2011. The other 97 percent of “small businesses” shared the rest — and under Obama’s plan, they would get to keep their Bush-era tax cuts.
So Biden is correct that the tax hike proposed by President Obama would hit only 3 percent of business owners.
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heehaw
LSU Fan
Foothills of the Ohio River
Member since May 2009
4043 posts
 Online
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:54 pm to Eighteen)
quote:
Net reported income? It's probably right.
This.
Most small business owners I know admit that they hide income.
One, whose business is worth over $1 million, told me that one year his family was actually considered below the poverty line because of the amount of income he reported.
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Y.A. Tittle
LSU Fan
Member since Sep 2003
44258 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:54 pm to heehaw)
quote:
Most small business owners I know admit that they hide income.
Ehhhh, I wasn't even really suggesting that.
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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
25539 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:55 pm to WaveHog)
Biden was also correct about Hedge Funds and Private Equity Funds that make billions and billions a year as they are "small businesses" as well since they are partnerships for the most part (passthroughs).
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a want
LSU Fan
Silicone Holler
Member since Oct 2010
7125 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:55 pm to Eighteen)
Yes
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SammyTiger
LSU Fan
Baton Rouge, LA
Member since Feb 2009
5018 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:56 pm to WaveHog)
The real question is what is considered a big busieness? Is it over 250,000 dollars? that doesn't seem like a big business to me. There is so much more money you need ot redfine rich, and big business when you make these tax codes.
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WaveHog
Arkansas Fan
Austin, TX
Member since May 2008
4312 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:56 pm to stat19)
quote:
Well Barry told us that Donald Trump is a 3%'er. So I imagine Mark Cuban is a 3% too.
and Mark Cuban said tax increases on himself and other wealthy would not lead to job losses, and that tax cuts on himself and the wealthy would not lead to job creation.
This post was edited on 10/12 at 12:59 pm
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RTR America
Alabama Fan
Memphis, TN
Member since Aug 2012
4008 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:56 pm to WaveHog)
quote:
accounts for 50 percent of the estimated $1 trillion in business income reported in 2011
Man increasing taxes on them is smart
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bamalee
Alabama Fan
Member since Jan 2009
472 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:57 pm to Tiger n Miami AU83)
That is correct but those 3% that make over 250000k employ over 50% of the small business employee's..
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BlackPawnMartyr
Alabama Fan
Houston, TX
Member since Dec 2010
2285 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:57 pm to gatorrocks)
quote:
Small businesses are the job creators and they will be taxed at a higher rate to pay for Obamacare
Or they wont be able to expand in order to keep under the necessary limit of a small # of employees to skirt the tax. Which means that they will have trouble competing with more established corportations.
Who would have known Obamacare is actually a protector of evil Big-Business.
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Mid Iowa Tiger 
Iowa State Fan
Houston
Member since Feb 2008
1165 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:58 pm to Tiger n Miami AU83)
quote:
Biden said this last night and it kind of shocked me. This is not supposed to be a troll or one sided skewed question, just wondering if this is actually valid? Is it an argument of what businesses are classified as "small" that makes this true?
As net taxable income? Yes. Here is why - at the end of the tax year they take everything above that line and dividend/bonus it out. Otherwise they end up paying a corporate tax rate of 35%+ and then get hit on the personal side for 35% or their personal tax rate again.
If at the end of they year they did not do this their effective tax rate would be crushing. So technically Biden could be right but only in as much as the tax code forces small businesses to play games to avoid having most of their income confiscated by the government to go to non-producers.
quote:
Yep.
Sorry if you bought the GOP line about taxing the small businesses and job creators
The GOP talking points really are funny when they start talking small business and trickle down taxes. What they mean is wealth redistribution upwards which is EXACTLY what the Bush Tax Cuts accomplished in stupendous fashion, EXACTLY as they were projected to do.
Spoken like a true 47%er It is not funny when as a small business owner you have to spend so much time managing your tax exposure.
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Tactical1 
New Orleans Saints Fan
Denham Springs
Member since May 2010
9498 posts
| re: Do 97% of all small businesses really make less than $250,000? (Posted on 10/12/12 at 12:59 pm to Y.A. Tittle)
quote:
Net reported income?
Probably right.
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