Posted: Dec 10, 2012 2:47 PM
Source: Associated Press
WASHINGTON - Congressional budget experts say President Barack Obama's plan to raise taxes on top earners will have only a small impact on the economy. Don't tell that to the 940,000 small business owners who will pay more.
All together, they will account for more than half the $1.3 trillion in business income reported on individual returns next year. Republicans say that makes them an engine for economic growth and job creation.
Dan McGregor says he and six other shareholders in a metalworking company in Springfield, Ohio, are looking at a tax increase of $250,000 to $300,000 next year under Obama's plan. The company has 365 employees. McGregor says more of the profits will have to go toward paying the higher taxes, leaving less to be re-invested in growing the company.