To Ex Politician Aid Insider
Talk about the facts not about what it could be. If you read the Washington Post article that Clark speaks of then you would see that what Clark says is not what the article is speaking about. As far as the 500k then 250k, I have only heard Senator at that time, Obama speak about 250K for married filing joint return. EA-Federal License to Represent Taxpayers before the IRS

The facts please. Read the article. 1.) The Washington Post article had nothing do with “Retained Earnings” as stated by CLARK. This article speaks of a sole proprietorship/partnership not C-Corporation. Only a C-Corporation can have “Retained Earnings”. 2.) The article spoke of a 19% increase on a married couple making net income (after business deductions) of $500,000 or more dollars a year. CLARK did not mention this fact. 3.) Terminologies must be defined, the same words are used but the user defines the words differently. When Senator McCain was talking about Small Business, he was defining the term completely different than what President Obama is defining a Small Business. Think about it. Senator McCain was speaking about cutting taxes for [C-]corporations, that is IRS Form 1120 as if most small businesses are [C-]corporations. President Obama spoke about reducing taxes for the self-employed/small businesses which file IRS form 1040 with less than $250,000 of net income. 4.) A lot of the comments are laying the blame about things that had nothing to do with President Obama but was from the prior administrations. 5.) The tax law with regard to taking a reasonable salary in a business that is a sub-S or Sub-C Corporation was in existence before President Obama. If you do some research, you will find a history on this and the lawsuits that the IRS have won in court on this matter.

Retro you ignorant lech. Everything Obama has done has proven that he intends to kill capitalism and business in general (except for green business--yea that's a good one). Clark never even mentions the idiocy of this arrogant fool you call your president. I am ashamed to call him mine. I never thought I would be looking back at GW and thinking, "Wow, I guess he wasn't that bad." Now I am.

I hope you fools who all fawn over this Socialist/Communist dictator catch a clue before we become a third world country, but it appears inevitable at this point. Obama can't stop talking about how Europe has it right and we have it all wrong.

To flip the quote from our new First Lady, "For the first time in my adult life, I am truly ashamed of my country."

when will the public get it through their thick heads that business don't pay taxes they just pass them along to the consumer in the price We need the fair tax

I recently read in the Kiplinger Letter that the Obama administration is targeting S-Corporations, the "life blood" of American small business (also partnerships). Not only do theses businesses pay BOTH HALVES of their social security and medicare on their salaries, (15.3%, not 7.65%), but now they want to target any distributions taken for social security as well. Let me give you an example. We own a small S-corporation that employs 8-10 people at any given time. We pay our people very well and will hire anyone - they don't need a high school diploma and we will hire those with a criminal record as well. We feel it is our duty to contribute to society in this way. Now the IRS says you have to take a "fair salary", so we pay ourselves $50,000 in salary and the $50,000 we make in profit we take as distribution. Of course, we pay income tax on the entire $100,000, but we only pay social security on the $50,000, or $7650 (remember we have to pay BOTH halves, or 15.3%. You employees only pay half of that. Your employer picks up the other half). Now we would have to pay another $7650, for a total of $15,300 in social security plus, of course, our federal income tax at approximately $18,000 because we have no deductions and our children are grown, for a grand total in taxes of $33,300 in taxes on income of $100,000. That leaves us only $66,700 to live on, or aproximately $5500 per month. For this we both work 24/7??? I don't think so. I would rather close the business and not get calls at 2:00am on a Sunday night to bail one of our employees out of jail, or spend most of my life doing all the paperwork required by government now. Now this is an oversimplification of the numbers, of course, because one half of the social security is deductible, etc., etc. I am giving a simple example as a way of illustrating the tax burden so as not to make this overly long. We are both highly qualified and my husband has been offered a sales job in his field that pays about $100,000. I could get an accounting job as well and we would be much better off - however, 8-10 people would be out of work. What would you do? Or we could sell the building and retire! The only thing that is stopping us is putting those poor guys out of work. I know they couldn't find a high paying job ever again.

All you Republicans here appear to be the same: Whine, whine, whine...and where are your better alternative solutions? You have none! At least you're not coming up with any here! Nor did Clark Howard. Clark mentioned the Washington Post article that discussed this issue. Did you read the last several paragraphs of that article? Here they are:

Not all business owners are complaining. Marc Friedman, who earns about $350,000 a year operating Ace Hardware stores in the District and Baltimore, said he wouldn't mind the extra $35,000 to $50,000 he stands to lose to the IRS.

"The small-business community feels there's a disproportionate amount of tax placed on us, and it's true," Friedman said.

But government services "can't be paid for equally by everyone," he said. "It's a big burden, but we're fortunate to be successful."

Bush's politics haven't improved matters for the little guy. Trickle down economics simply don't work. We have to find a way so that we will no longer hear that the rich keep getting richer and the poor keep getting poorer.

BIG BUSINESS BUY VOTES
Big business buys off the politicians. They often donate to both parties so the politicians have to do what big business wants or they don't get their reelection campaign money.

This is just another way for big business to get bigger. The more smaller businesses they can drive out of business the more money they make and the easier it is to fix prices.

FAIR TAX
If we switch to the "Fair Tax" all of the Federal taxes would be collected as a "Federal Sales Tax." All other Federal taxes would be eliminated. No IRS, no federal income tax forms to fill out, or any other tax. If the states would do it, like some are already, we wouldn't have to fill out any tax forms. Think of the billions of dollars paid to these agencies each year just to collect taxes. The retailer would do it at the cash register and send it to the Feds.

The prices of the products would be the same because the businesses wouldn't be paying taxes on the products they sell. The taxes they now pay are included in the price of the product. Raise their taxes and you raise their prices.

With the Fair Tax you would see how much your taxes are when you buy something because it would be added on each receipt.

Since there won't be ANY FEDERAL TAXES on business they would move their headquarters back to the USA, thus creating more jobs, and other countries would start moving THEIR corporate headquarters here because they wouldn't be paying any Federal taxes, thus creating even more jobs.

I don't understand this argument at all. The only way a small business is a taxable entity is if it's a "C Corp". I am an accountant with a small business practice. Virtually all my clients are "S Corps" or "LLCs" where profit passes through to the shareholders as income for tax purposes if it is not reinvested in the business. Explain how you define "small business" and what percentage of these small businesses by your definition are taxable entities?

Bunch of idiots that can not read.

It has nothing to do with Obama. It is about DC's local government.

tom, learn to spell, I don't know what you were trying to say...and include the 7 trillion hole that bush put us in before you blame it all on the new president. Clinton was the only one who had a handle on the deficit and budget. It's gone downhill since then.

As a small business owner, until last year, I paid 18% self employment tax on all my companies earnings, as a painting contractor I paid 20% workers comp and public liability insurance. If i treated my workers as employees instead of subcontractors I would have had to match their social security taxes as well. I recieved no tax credits or help from the government. I gave up contracting because i refuse to learn spanish and painters in Ga. are 90% spanish speaking illegals. The government claims to want to help small business, but they don't really. The businesses they help are making 6 figures and allready established, they need tax credits and loopholes to keep thier new wealth...the companies just getting started that struggle to get financing and are in debt the first couple of years trying to survive get no help at all....unless you buy a government grant book to teach you how to hire a black handicapped woman as an employee so you get grant money. The future of the united states is like that of mexico...upper class and lower class, rich and poor, nothing in between....If you have money , you can make more and get loans and tax breaks, if you are poor you can make payments for the rest of your life to the rich, and expect no help from the government, since poor people can't afford lobbyist.
Alan, I hear ya....for 100k-200k you can live real well in mexico...thats retirement plan B for me...of course i will need to learn spanish.

Pat, my dear, Ah don't know if you realize it but Lefty and Brian were bein' sarcastic.

Education in Europe is better than America, and the people there are far more educated, but the governments there fund much more than here. Interesting Point? Clark what are your thoughts?

Let's face it: everyone is going to pay through the NOSE for the atrocities now being comitted in Washington. That borrowed money WILL come out of everyone's pocket, one way or another. Just like California, Obama will run most small businesses out of town by taxing them to death. Again, ultimately, we will ALL end up paying insane tax rates for this nonsense. I've basically shut it all down: the 401k, roth, all savings, everything. It's all under the mattress now, and it's going to STAY THERE so that Government can't get their hands on it.

What's next? Well, higher tax rates mean only one thing: we buy even less, then taxes go up even more. Will there ever be an end to all of this? Yes, but only when we all stop relying on Obama, and start doing business with each other, under the radar so to speak. Think money under the matteress; think garage sales on a very large scale. Think only private purchases of used goods and avoiding retail establishments; think backyard gardens and private co-op's. Think non-cash bartering for goods and services.

As usual, the government is punishing the businesses that are doing the right thing - being successful and saving for rainy days. That is what they will do also to individuals - people who make a bit more or save or have 401(k). They will be coming after that money soon. Say so long to your savings. It will go to help all of those people who have never learned to live within their means or save for a rainy day/emergency. They want everyone poor.

I have a question for all of you Obama folks, where is the tax money going to come from when all of us that pay these taxes give up and quit working and start leaching like the rest? Use your head for something besides a knot to keep your spine from falling down your legs and think it out, before we start singing Uber Alliese with the current bunch of goofy nuts in charge

Obama is the protector of Americans...business owners, workers, and leachers alike. Haven't you seen him speak (duh)??? You won't be making fun of him when he makes Tarp III to swiftly attack this Crazed Swine Flu Plague Epidemic. It will take several Trillion more dollars to solve this human travesty and Obama is the only one with sense and guts enough to borrow more money to attack this serious epidemic. OK, I'm back to watch CNN now. Thank GOD this brave and wise man is in office

Don't worry. Obama and the Democrats will spend the money wisely: like bailing out the UAW so they can continue to support the Democrat Party and unionize your small business. Poles have shown that up to 80% do not want the auto companies billed out. But Obama and the Democrats don't care. They will spend your tax dollars as best benefits them. This is corruption on a scale that few can comprehend.