That seems to be the main point of confusion among opponents of the measure. We are not talking about $250,000 of REVENUE, but rather $250,000 of PROFIT. Big difference.
And according to the U.S. Chamber of Commerce, about 95-96% of small businesses in the country make less than $250,000 net profit.
#62 | Posted by SanAntonioRogue at 2009-03-02 09:08 AM
You have a good point SAR. Even when talking about profit properly for a Small Business. There are many many things 95% of Americans do not understand. If they are set up as an LLC (which most are) or S corp, they are still at a HUGE disadvantage for certain things. Take Health Insurance. If I pay to partial or total coverage for an employee (at about $8K/yr for full coverage, good insurance) I can deduct it from Revenue, yet I can not pay for my own thru the business & deduct it. I have to count that as income. So my Family of 4 for average coverage cost me $12K-$15K/yr & I have to pay taxes on that income ..... let me know when employees of others have to do the same.
When I pay an employee $20/hr, $2/hr gets added to unemployment insurance, $1.5/hr gets added for general liability insurance, $2/hr gets added for auto insurance (we run lots of trucks/etc), $2/hr is the employers part of SS/Medi taxes, $4+/hr for 50% of health insurance. The employee makes $20/hr, my cost ends up being $32+/hr & I get off fairly light.
Obama, his followers & the vast majority here have NO CLUE what it take to run a business, let alone start one to bring it to a successful model ..... but they are more than happy to 'take' for it every chance they get. They are fine with a small business struggling to get going for 3 or 5 yrs, but once they get past their struggles, they are waiting at the door wanting their 'fair' share. Keep push the ONLY business sextor that has created jobs since 2000 & everyone will find out just how bad this will all get. There is always Risk vs Reward when running any business, but the risks are normally MUCH higher for a small business. The Govn't (& not just Pres Obama) has been raising the risk factor for awhile now & starting over the past months, they are lowering the reward factor. The MATH just doesn't work. There is very little incentive for a small business owner to put their capital into this economy in any fashion, not the markets, not their business, nothing. Without capital ventures/investment, Pres Obam could print $1000 bill 24/7/365 & hand them out daily & it will not matter.