OMG! It's the Fiscal Cliff!

[Lamplighter]

Where is Adek when you need him ? Pls explain this to me...

Obama says...
The wealthy (>$250 k/yr) must pay higher tax rates

Republicans say...
"Revenue is on the table"
"Higher tax rates harm "job creators"
"New revenue can be found by eliminating business tax deductions and loopholes"
"Small business owners create more jobs that anyone else"

But, but, but...
Dun & Bradstreet
Scott Shane
5/3/12

Small Business Owners’ Earnings

Let’s start with the average small business owner.

Researchers at the U.S. Treasury’s Office of Tax Analysis examined IRS data on people who filed
personal income tax schedules C, E and F, Forms 1065, 1120 and 1120S because they had business income in 2007.
They found that the 9.4 million business owners generated $335 billion in net income in 2007.
That means the average small business owner’s net income was approximately $36,600 in the last pre-recession year.
<snip>
The average small business owner’s earnings are held down
by the large number of micro businesses with no employees.
The analysts at Treasury found that only about one-in-five small business owners have any employees.
And Census data show that non-employer businesses make very little.
While income data aren’t available, the average revenue of a non-employer firm in 2009 was less than $40,000

Also holding down average small business income is the large number of small companies set up as sole proprietorships.
Internal Revenue Service (IRS) data show that the average nonfarm sole proprietorship had net income of less than $12,000 in 2008.

More successful small business owners are generally set up as Sub Chapter S Corporations.
IRS data reveal that the average S-Corp generated about $100,000 income in 2007.
<snip>

So, are the Republicans knowingly proposing to eliminate deductions
that affect small business owners (earning less than $250 k/yr) ???