Small Businesses in Miami Wait for Tax War
By: Leon Castles
on Thursday, April 12, 2012
Small business owners in Miami are now waiting for the right time to speak up but more than that many people are waiting for them to decide which side they are on. Just a few days ago, President Obama gave a speech at the Florida Atlantic University which has now created a national topic. Many small business owners now believe that they will have to pay more tax if they end up supporting the Buffet Rule that the President has been talking about. On Tuesday, the President said that anybody that has the earning power of $1 million and above annually should pay what the middle class families already pay.
This means that people that are earning $1 million and above will have to pay 30% of their income. However, this will only discourage the small business entrepreneurs because now they will have to start paying more taxes in the future is this Buffet Rule comes into the scenario. However there are many others that claim that this step will only create more debate in the country than revenue because even if the Buffet Rule is passed it will only be able to generate $47 billion in revenue which is not sufficient for the economy of the country. Many believe that at the moment people who are earning more income normally get their income through capital gains and dividends which are taxed at 15% rate. This means that the tax system has to be changed in the future.
Many financial experts claim that the Obama administration is trying to cover up the deficit with this step but by generating $47 billion they will still not be able to cover up the $1 trillion annual deficits by the federal government.