The latest release of the coming universal health plan calls for a tax surcharge on anyone making more than $1 million a year. This legislation, according to Bloomberg.com, would also place additional taxes on households with more than $350,000 a year in income and calls for further increases if the measure doesn't hit a target for cost savings.
First, let's take a look at who makes $1 million a year. Many small business owners have their businesses set up so that when they file income tax, the business income is treated as personal income. Then things are adjusted, and they pay their taxes. These are the people who are going to be affected by this tax. These are the people who will not be able to hire new people or expand their businesses because of the extra tax expense.
According to the U. S. Chamber of Commerce:
"The intention of this plan is to tax high-income households, but the real victims would be America's small business owners," the Washington-based group's president, Thomas Donohue, said in a statement. "Since when does our great free-market country punish success?"
Eric Cantor, the No. 2 House Republican, picked up on the theme, saying the plan would be paid for by "small business men and women we are counting on to start hiring workers again."
The legislation would raise taxes on larger corporations as well. Among other things, it would make it easier for the Internal Revenue Service to prosecute tax shelters, and deny certain cross-border deductions that some companies are able to claim through tax treaties.
This is a sure-fire way to kill the chances of any solid economic recovery from the current recession.
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