Howdy,
First, anyone who knows me or reads this blog knows I'd crawl naked over hot coals to vote against Trump.
Harris says she won't raise taxes on Americans who aren’t wealthy. This isn't true. She's raising their taxes, it's right here on her website.
Millions of Americans have small businesses - plumbers, accountants, lawyers, landscapers, carpenters, web designers, hairdressers, artists, writers, etc. They file their business tax return as either an LLC (the IRS taxes an LLC as a corporation) or an S-Corporation.
If they have an S-Corporation their business income is taxed at the corporate tax rate. If they have an LLC their taxes flow down to their personal tax return.
Harris is raising the corporate tax rate. Under Harris' plan these millions of small businesses are going to pay more in taxes.
She's also raising taxes on anyone making more than $400k annually. Again, an LLC's taxes flow to the personal return. If the LLC generated more than $400k in business income, their personal tax rate is going up under Harris' plan.
Surely, the accountants for these millions of small businesses are advising them that if Harris wins their taxes are going up next year.
Harris will also raise the capital gains tax rate from 20% to 28%
So let's say a business sells for $1 million and they're able to structure the entire sale price as capital gains. Under Harris's plan they'll pay 8% more in taxes compared to today's tax rate. They'll also pay more taxes on the proceeds from the sale not classified as capital gains compared to today's tax rate.
Typical Internet liberals say “Anyone who sells a business for more than 1 million is rich – they can afford to pay more tax”!
By no means are they rich. Let's look at a day in the life of an American with a lifestyle business.
Their small business sells for $1 million. IRS rule is that the seller is taxed on the gross sale price, not the net. The business has $200k in debt - most businesses have debt.
Any small business will want to structure their sale as capital gains. Because they pay less in tax than if the sale was taxed at the corporate tax rate. Instead of the seller taking home $600k – (1 million sale price) - (20% capital gains) - (200k debt) - the seller takes home $80k less, or $520k.
That $80k could have been put in savings, invested, used to help pay for college education, or pay off personal debt.
There's lots of Americans who won't put up Trump yard signs, won't tell anyone they're voting for Trump, who can't stand him. But they're gonna vote for Trump. Because they'll save hard earned bread. And no one should blame them.
Instead, they should blame the Democrats for wanting to take hard earned bread off of Americans tables.
Harris isn't being honest about her tax plan. Raising taxes on ordinary Americans under any scenario is a really bad idea and why Democrats lose elections.
tty next time,
