Small Business to Shoulder over a Third of Tax Increase on Top Earners

And here is more proof that President Obama's so called "tax cuts" for the middle class will hurt small business. This would be the small Mom & Pop type business that built this country. These so called cuts will kill the small to medium size companies that in the aggregate employ millions of Americans across the country.

From Tax Foundation --

Advocates of allowing the top two federal income tax rates to expire claim that only 2 or 3 percent of businesses would be affected, but a new Tax Foundation report shows that more than one-third of the revenue from an increase in the top two rates would come from business income.

About 39 percent of the $630 billion tax increase on high-income taxpayers (defined by President Obama as individuals earning more than $200,000 and married couples earning more than $250,000) in 2011 would come from business income. This amounts to an extra $246 billion in taxes on business income over 10 years.

"The fact that 'only' 2 or 3 percent of taxpayers with business income would face higher taxes is meaningless to the debate," said Tax Foundation President Scott Hodge, who authored the paper. "What matters most is not the number of taxpayers impacted, but the amount of business income - and, therefore, business activity - impacted."

Tax Foundation Special Report, No. 185, "Over One-Third of New Tax Increases to Come from Business Income," is available online at http://www.taxfoundation.org/publications/show/26696.html.

More than 74 percent of tax filers in the highest tax bracket report some business income, compared to 20 percent of those at the lowest bracket.

Of the roughly $864 billion in taxable business income reported on individual income tax returns in 2008, nearly 68 percent was claimed by taxpayers earning more than $200,000, and 35 percent was claimed by taxpayers earning over $ 1 million.

"This means that the combined business income of every taxpayer earning up to $200,000 was still less than the total business income of taxpayers earning more than $1 million," Hodge said.

More business income is taxed under the individual income tax code as "pass-through" businesses (non-corporate firms such as sole proprietors, S-corporations, Limited Liability Corporations and partnerships) than is taxed under the traditional corporate income tax code. The number of pass-through businesses nearly tripled between 1980 and 2007, from roughly 10.9 million to more than 30 million. The number of traditional C-corporations declined steadily from 2.2 million in 1980 to 1.9 million in 2007.

In the same time period, net receipts for C-corps roughly doubled, from $752 billion to $1.4 trillion, and net receipts from pass-through entities saw a six-fold increase, from $315 billion to more than $1.8 trillion.

The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.

John Kasich releases "Jobs Ohio" Plan (Video)

Please share your thoughts....

From John Kasich --

John Kasich’s top priority is to revive Ohio’s economy and create jobs. With almost 400,000 Ohioans out of work on Ted Strickland’s watch, we know that Ohio’s current strategies aren’t working.

Though once a cutting-edge organization, the Ohio Department of Development has become bogged down with bureaucracy and programs that are not related to economic development. A change is needed.

Ohio’s economic development efforts must be re-aligned to make job creation and economic development a priority and must be rooted in the belief that economic health comes from a strong innovative, flexible private sector, not from government.

A New, Private Sector Economic Development Corporation

As governor, John Kasich will replace Ohio’s government-run economic development functions with JobsOhio, a new not-for-profit corporation which will report to the governor and oversee the state’s efforts to revive the state’s economy and create jobs. A private-sector approach to economic development will be more responsive to the needs of business.

• A board of directors comprised of CEOs will be an important asset for selling the state at the highest levels;

• An expert staff focused solely on economic development will give businesses confidence that their needs will be met and help rebuild Ohio’s reputation as a good place for business;

• The increased accountability of a private corporation will produce better results.

Freeing Ohio’s economic development efforts from their current bureaucratic mindset and shifting them to a new private sector corporation will allow Ohio to more aggressively help existing businesses grow and expand and attract new businesses to Ohio as well.

To read the complete Jobs Ohio Plan click here.

Disclaimer: This posting should not in anyway be taken as our endorsement or implied support for John Kasich. This posting is only meant to serve educational purposes for our members and the general voting public.

Rep. Jim Jordan (R-OH); Words of Economic Wisdom

Lawmakers work to reenergize Ohio

We want to thank Sara from State Rep Nan Baker's office for forwarding us the following requested press release...

For Immediate Release

September 21, 2009

Media Contact: Megan Piwowar
(614) 466-0863

Lawmakers work to reenergize Ohio

Cleveland—State Representative Nan Baker (R-Westlake) today unveiled proposals by Ohio House Republicans to spur economic development. Baker and other members of the House Republican Caucus, including Minority Leader William G. Batchelder (R-Medina) and Representatives Ron Amstutz (R-Wooster), Todd Snitchler (R-Uniontown), Dave Hall (R-Killbuck), and Terry Boose (R-Norwalk), revealed extensive plans to bring about job creation and industry growth.

“During this economic crisis, with everything at stake, Ohio cannot afford another second of inaction on the part of House leadership,” Baker said. “As the ranking minority member of the House Economic Development Committee, I have become increasingly frustrated by the Democrat leadership’s unwillingness or inability to lead. Therefore, House Republicans worked tirelessly over summer recess to create a collection of economic proposals that could potentially turn the economy around.”

The press conference, in conjunction with four other conferences across the state, was conducted to address the failure of the Democrat-controlled Economic Development Committee to conduct regular, productive hearings on the economic condition of Ohio.

“The Republican caucus is focused on what Ohioans care about the most, jobs and economic development,” Batchelder said. “While Democrats have not given priority to the creation of jobs, we have been working on solutions for Ohio’s economy.”

Frustrated with inaction on the part of Governor Strickland and the Economic Development Committee, Republican members engaged in discussions with the local business community for ideas to revamp Ohio's economy. Based on their findings from market research and conversations with constituents, the House Republicans created a package of proposals that were announced at the press conferences and will be introduced in the coming weeks.

“So far, the Democrats have not shown that they are willing to make any important decisions regarding economic development within our state,” Hall said. “How many more businesses and young people need to flee the state before the Democrats decide they need to act?”

Among these ten bills are proposals to offer employer tax credits to hire unemployed Ohioans and to grant income tax credits for college graduates who remain in Ohio. Altogether, these bills are designed to provide resources to small businesses, offer incentives for businesses and young people to remain in Ohio, and track Ohio's progress in rebuilding its economy.

“In presenting a package of economic proposals, our goal is to spark an honest, constructive debate about the best course of action for Ohio’s future,” Amstutz said. “House Republicans have a specific plan in place to bring about economic recovery, but since the onset of this General Assembly our voices have been silenced, regardless of how practical our ideas were.”

“This recession is affecting all Ohioans, both Republican and Democrats,” Snitchler said. “We need to all work together to provide a solid foundation for Ohio’s economic future. We encourage lawmakers at all levels of government to consider our proposals and use them as they wish—changing the course of Ohio is what is important, not receiving credit or praise.”

The House Economic Development Committee has only met four times since the commencement of the 128th General Assembly and has yet to pass a single bill. The only item to pass out of committee was an ineffectual House Resolution that created the Compact With Ohio Cities Task Force, which focuses on local municipalities rather than the economic health of the entire state.

“Ohioans have entrusted us to make difficult decisions during difficult times, and we have an obligation to uphold our commitment,” Boose said. “This is not the time to coast. This is not the time to sit back with our fingers crossed. Ohio needs action, and if the Democrats won’t step up to the plate then I will.”

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Contact Your State Senator about the Ohio Budget

Cleveland Tea Party Patriots

For Immediate Release

May 10, 2009

Contact: Cleveland Tea Party
clevelandteaparty@gmail.com

Tea Party Patriots - Our Time Has Come!

Contact Your Senator About Ohio's Gaping Hole of a Budget

Already burdened with federal spending and programs that will bankrupt our country - The State of Ohio legislators are proposing a budget(s) that will 'one up' the Feds in feckless, irresponsible spending.

Unable to pay the bills for even this year - about $300 million in discretionary spending left out of the $3.8 billion in spending still to be done in fiscal 2009 - and unable to explain the proposed spending or funding for the upcoming budget - it is time for the Tea Party Patriots to let our elected officials know the Silent Majority will be Silent No More!

We, the Tea Party Patriots, must stand firm and resolute that any budget proposal put forth, be it from the Ohio House, Senate or Governor Strickland, be fiscally prudent and not bankrupt our future. Anything less is unacceptable!

We are asking that you, signing your letter as a Tea Party Patriot and in your own words, contact State Senators on the Finance Committee and Senate President Bill Harris urging them to reject any budget proposal that is not fiscally responsible. Using one-time stimulus money to fill the budget gap is not only fiscallly irresponsible -- it is a violation of our State's rights. The future of our State, our lives and our children depend on our actions!

We can only hope that our State Senators not only hear our message loud and clear, but act as wise stewards of our money. If not, they can be sure we will deliver the message in person.

Please find below the contact information for Senate President Bill Harris and all member of the Ohio Senate Finance Committee...

Senate President Bill Harris
StatehouseRoom #201, Second Floor
Columbus, Ohio 43215
Telephone: 614/466-8086
Email: SD19@senate.state.oh.us

Senate Finance Commitee

Senator John Carey, Chairman
Senate Building
Room #127, First Floor
Columbus, Ohio 43215
Telephone: 614/466-8156
Email: SD17@senate.state.oh.us

Senator Mark Wagoner, Vice Chair
Senate Building
Room #129, First Floor
Columbus, Ohio 43215
Telephone: 614/466-8060
Email: SD02@senate.state.oh.us

Senator Dale Miller
Senate Building
Room #048, Ground Floor
Columbus, Ohio 43215
Telephone: 614/466-5123
Email: SD23@maild.sen.state.oh.us

Senator Ray Miller
Senate Building
Room #228, Second Floor
Columbus, Ohio 43215
Telephone: 614/466-5131
Email: rmiller@maild.sen.state.oh.us

Senator Thomas F. Patton
Senate Building
Room #140, First Floor
Columbus, Ohio 43215
Telephone: 614/466-8056
Email: SD24@senate.state.oh.us

Senator Shirley Smith
Statehouse
Room #223, Second Floor
Columbus, Ohio 43215
Telephone: 614/466-4857
Email: senatorsmith@maild.sen.state.oh.us

Senator Gary Cates
Senate Building
Room #132, First Floor
Columbus, Ohio 43215
Telephone: 614/466-8072
Email: SD04@senate.state.oh.us

Senator Kieth Faber
Senate Building
Room #138, First Floor
Columbus, Ohio 43215
Telephone: 614/466-7584
Email: SD12@senate.state.oh.us

Senator Jason H. Wilson
Senate Building
Room #050, Ground Floor
Columbus, Ohio 43215
Telephone: 614/466-6508
Email: senatorwilson@maild.sen.state.oh.us

Senator Tom Niehaus
Senate Building
Room #220, Second Floor
Columbus, Ohio 43215
Telephone: 614/466-8082
Email: SD14@senate.state.oh.us

Senator Chris Widener
Senate Building
Room #041, Ground Floor
Columbus, Ohio 43215
Telephone: 614/466-3780
Email: SD10@senate.state.oh.us

Senator Jimmy Stewart
Senate Building
Room #040, Ground Floor
Columbus, Ohio 43215
Telephone: 614/466-8076
Email: SD20@senate.state.oh.us

Senator Bill Seitz
Senate Building
Room #143, First Floor
Columbus, Ohio 43215
Telephone: 614/466-8068
Email: SD08@senate.state.oh.us

Again, in your own words and expressing your heartfelt feelings, contact the above State Senators by phone, mail or email. Let them know that as a Tea Party Patriots, no longer will we sit silent.

The Cleveland Tea Party Patriots
clevelandteaparty@gmail.com