To: Kevin Rose who wrote (598065 ) 8/2/2004 8:28:23 PM From: PROLIFE Read Replies (3) | Respond to of 769667 THIS YOU MUST REMEMBER ABOUT JOHN KERRY'S TAX PLANS John Kerry is announcing, rather proudly in fact, that he intends to raise taxes ... but only on those people in this country who are making more than $200,000 a year. This idea is quite popular with an alarmingly large number of (stupid/envious) Americans. I'm going to explain why this is a bad idea. To most of my listeners I offer this apology for the slow, plodding way I am going to go about this. The problem is that most of the people who realize that Kerry's tax increases are dangerous already understand what I'm going to tell you. Those who think it's a great idea were probably educated in government schools. That's why I have to take this slow. These folks aren't the easiest people to educate. OK ... first of all, on the campaign trail Kerry will usually chose his words carefully. He will say that he wants to raise taxes only on "people earning more than $200,000 a year." He intends for you to believe that he's talking about individuals here; individuals earning more than two hundred grand a year. But Kerry didn't say "individuals." He'll say "people" or "Americans." The secret here is that married couples fit under the definition of "people" and "Americans." Kerry's tax-increase plans include any couple reporting more than $200,000 in income on a joint tax return. So, you may be making $85,000 a year, and your wife or husband may be making $120,000 a year, and you think you've escaped Kerry's tax increase. Sorry! File that joint return and join the club! Now ... just who are these people earning more than $200,000 a year? Sure, some of them are salaried individuals or commissioned sales weasels ... but a lot of them are small business owners. In fact, a huge percentage of them are small business owners. To be more specific ... a huge percentage of these people are the very small business owners our economy depends on for well over 75% of all jobs. These small business owners are operating their businesses under such legal structures as a Subchapter-S Corporation or an LLC, a Limited Liability Corporation. These legal structures allow these individuals to operate their businesses with most of the legal protections afforded regular corporations, but without some of the more onerous accounting and financial requirements. These Sub-S and LLC business owners do not file corporate tax returns. All of their business earnings are reported on their personal tax returns as personal income. So, if you're running a dry cleaner, a restaurant or manufacturing company; if you're a doctor, lawyer or dentist; if you own a construction company or any other small business as a Sub-S or LLC you will report the earnings from that company on your personal tax return. You can see that it won't take much at all for your income to exceed the magic Kerry-targeted $200,000. Now just what happens when you raise the income taxes on these $200,000 + income earners? Come on now. I know you went to government schools ... but you can see the effect here, can't you? You're not really raising an individual's taxes, you're raising taxes on a business. These small business owners turn over to the government in taxes the money they could be using to expand! Why do they want to expand their businesses? Because the more business they do, the more money they make! To do more business they may need more employees! But if the government is taking more of their earnings, then there is less money available to hire new employees or purchase equipment that is needed for business expansion! This is why you see economic growth following tax cuts. Sure, the extra money in the pockets of individual taxpayers doesn't hurt ... but the real growth comes from small business owners using their tax savings to expand their businesses by purchasing new equipment and hiring new people! Does Kerry understand all this? Two weeks ago I would have told you that he understands it all-too-well. Today, I'm not so sure. After all, just last week I interviewed a congressman from Detroit, John Conyers, who didn't even know that American corporations have to pay federal income taxes to our federal government for earnings realized solely from overseas operations. So, it's not beyond the realm of possibility that Kerry might be as dumb as most other Americans on this issue. I'm going to make the assumption, though, that The Poodle knows who these people are he wants to hit with a tax increase, and he knows what the effect will be. He knows, but he doesn't give a damn. For Kerry, it's all about power. He knows that the vast majority of Americans couldn't write a coherent sentence about the tax treatment of Sub-S and LLC small businesses. He knows that when he talks up a tax increase on "Americans making more than $200,000 a year" that most people create a mental image of some high-roller somewhere simply getting a $10,000 paycheck every two weeks. The voters Kerry is after know that they'll never see a paycheck like that, and by God they want to punish those evil people who do. After all, they're only making that kind of money because they've cheated someone else or because they have crooked lawyers. They're not really working people like us, are they? They just sit around all day polishing their Benz and sipping Chardonnay. Those $200,000 a year types were just lucky. After all, didn't Richard Gephardt say that they were the ones who "won life's lottery?" And don't they call us the "less fortunate?" So, if you happen to be on the fence in this election, here's your question. Do you want these small business owners to keep that money and spend it on business expansion, or do you want the government to take it and spend it on who-knows-what in some congressman's district to help him buy some votes? If there was any decent economic education in our pitiful government schools we wouldn't be discussing this right now. boortz