As if small businesses aren’t hurting enough.
As if small businesses aren’t hurting enough.
You feel sorry because small businesses will have to actually pay the taxes they already owe, but are not paying? This is not a tax increase, it's funding so the IRS can collect from deadbeats.
Being a "hurting small business" isn't justification for breaking the law via tax evasion.
That's valid to go after anyone not paying what they owe. I thought it was the mega rich, though, that are hiding their gains to avoid paying taxes. The Democrats will continue to push this as a crackdown in tax-avoiding ultra-rich while actually clamping down on small frye. The only viable place for Democrats to fill the cash spigots is from middle income taxpayers.
This isn't clamping down on middle income taxpayers. It's clamping down on non-taxpayers.
Here's my take:
This is not raising taxes. Period. It sounds like the article is attributing the burden to those earning under $200k, saying that they will get audited more and have to actually pay the correct amount of taxes. This isn't raising taxes, this is catching people who are not paying the correct amount of taxes and forcing them to do so like all of us are compelled to do by law. I feel 0 sympathy for someone who has been underpaying (intentionally or unintentionally) and now has to pay what is due according to tax law. In conclusion, this is not raising taxes, it is enforcing the tax code. Everyone doing things by the book should want this. See references below:
"A key provision in the Inflation Reduction Act — which throws an extra $80 billion to the IRS to improve the agency’s collection of under-reported income — will end up targeting small business owners to pay for the legislation."
" Accordingly, tax experts warn that the IRS’s audits will be far more painful and costly for small business owners — even for those who think they’re filing their taxes correctly."
“The approach here is to double the IRS workforce, take the leash off, and see how much they can collect,” Hinchman adds. “I think they’ll collect it but it will be quite painful.”
Isn’t this like not letting middle distance runners step inside the lines?
You have no idea what the wealth of income level is of the people who own these companies. Some of the owners could be below the poverty line and others could be Elon Musk. It doesn't change the fact that they are legally responsible for paying taxes on profits.
You're also conflating personal income and business profits. Profits the money left after factoring in all expenses.
Small business owners are some of the most blatant tax cheats out there. I had a case against a guy who owned plumbing business. He did great after the 2021 freeze in Texas when everyone's pipes burst. His business probably took in $300-400k, but he claimed so many bogus expenses (wife and daughter on payroll, every meal expenses, non-work truck expensed, etc.) and did a bunch of jobs for cash that he only reported a profit of $45k.
Maybe it's because trumperes insisted that the ability to set up a shady pass-through was necessary. Perhaps individual taxes are now just passed through. And "small business " is now paying? Or maybe cutting corporate taxes wasn't such a good idea?
This is almost as unethical as hedge fund billionaires who produce nothing for society bribing congressmen so that they pay a lower tax rate than everyone else. There is more than enough grift to go around.
This is why most economists until the early 20th century were so disparaging of an income tax. Because it becomes a giant battle over who gets to write the tax code and protect their income from taxes. Value add tax is the best system.
As others have rightly pointed out this is a continuation of the Dems war on the middle class. Dingbats like Warren get the masses riled up about how Elon isn't paying "his fair share" so we need to enhance enforcement. The problem is not enforcement. Billionaires almost always pay what they legally owe, the government has inserted so many loopholes for them that they have no need to cheat. This will be an used to target small businesses and job creators. Rather than actually producing they will now have to spend more time fighting the IRS. And for every story like Roy's plumber there will be numerous others who will be targeted who have done nothing illegal.
Just think about this with an open mind for just once....
Just remember that the same Administration that is giving you the new "Inflation Reduction Act" and doing that interesting math , are the same people that just YESTERDAY in full view at the daily Press Conf. predicted +150K folks of Job Growth for July and was off on that by over 300%. That's a good thing, I think? Hard to believe that with 24 hours to the release of that number you could be off by that much? In fact it's comical.
Comforting, isn't it?
Now, I am sure folks will come on and trash me for this comment.But just think about it..yesterday the worst Press Secretary in four Administrations said ...that even though +250K was predited by others..it would look more like a net add of +150K and thats how it might look as we transition..love that phrase...foward.
The fact is the day BEFORE the numbers are put forward they are off by over 378K ..or the same number of jobs net from June..I am sure someone will dream up some preposterous excuse.. but how is even remotely possible to miss by well over 300%?
They weren't off by 300% but math is hard as you are showing yourself.
The jobs report and unemployment number is an engineered pile of $hit. There is little relation between it and reality, not to mention the initial report is always wildly off. It's like CPI the government has engineered it to reflect what they want.
We are at 3.5% unemployment but the labor force participation is 1.5% lower than when we had the same unemployment rate in early 2020? Labor force participation has also declined since the start of the year, so much for the red hot jobs market. We are down almost 6% in labor force participation since the early 2000s when unemployment was at 5-6%. More than demographics going on there. The US has gotten better at engineering data over time. But we're definitely not in a recession......
I'm not sure what to believe in this regard. They claim most of the money will come from the 15% minimum tax, which will only apply to firms with over a billion in revenue (if that is the case, that's great, although it may have the unintended consequence of sending more manufacturing jobs abroad). The added enforcement is supposedly to catch big guys that are off shoring money. Yes, there are some contractors that make some insane write offs and sometimes get away with it (like the guy Precious detailed, who obviously did not get away with it), but on the flip side, there are waitresses, baristas, house cleaners, drug dealers, massage therapists, etc. that take in loads of cash and never declare it as income. They all operate in cash, vote Democrat, receive oodles of government benefits and complain that rich people don't pay their fair share. As someone who has always paid his fair share, I am offended by all these people.
You know that the labor force participation rate comes from the same report, right?
Never Trumper...yesterday in plain view of the Press Corp..Miss "No Real Answers Herself" Karine Jean -Pierre said, that they expected a 150K net new jobs for July. I saw it myself and sold it as a "Transition". Other forecasts did have it at +250K. The supposed real number is +528K.
Either way ,YOU do the math and it's a huge miss..in my world it is 3X Plus the missed number. Sorry if my quick math was sketchy. It is a Huge prediction miss either way. The same way they are completely bamboozling anyone and everyone on the new Act, which will continue..they say so themselves by the way, increasing Inflation for up to two years..we CANNOT afford another f-ing two days!!! Seriously.
All laws in the past 40 years have been written to help the super-wealthy and large corporations, not just tax laws. The super-wealthy have purchased congress, the White House and now the Supreme Court.
Joedirt..good point, Amazon has already taken pre emptive measures, their work force in total is down by over 100,000. All this crap will do, is add 81,000 IRS bird dogs..really? WE need that, at an added what? $80B in payroll alone, forget about the added IT and other requirements? And make Corporations downsize immediately in one form or another. So, just when Biden and his band of incompetents think that THEY just got all these people back to work and "CREATED" what a lark that term is...new jobs? Wait until you see the fall out from this. They created NOTHING, it's just people going back to work that finally had to..from leaving suring the Pandemic, I have said this for months on end. Created what? What?