The "small business" crap is really ridiculous. "Small business" definition is widely abused. The most common definition is a business with less than 500 employees. They are NOT hit with the proposed increase since they pay corporate taxes and not personal taxes. Big sports starts, media starts, Hollywood celebrities are all considered "small business". This misuse of the term is an attempt to have people think of that true small business that runs the neighborhood store. These people have a minuscule chance of having enough taxable income to be hit, at all, with the proposed increase. A simple canard, that is both dishonest and misleading.
Additionally, $250k IS "rich". First, this $250k level is referring to TAXABLE income. The fact is that Obama's plan is to allow the two top marginal tax rates to go back to their 2000 level. Talking just about married compiles filing jointly, that means their TAXABLE income OVER $217,250 rate go up from 33% to 36%. On the top marginal rate, a married couple filing jointly, their taxable income over $388,350 rate go from 35% to 39.6%
For a married couple filing jointly to have $217k in taxable income, their actual income is well over $300k. That puts them in the top 2% or earners. By definition, when you are in the top 2% of earners, you are "rich".
Additionally, the bulk of the tax increase will really come from the top .01%, which means millions in income. If there is an increase in capital gains rates, as there should be, we are talking probably close to $100 billion per year.
I believe that this is an underestimate.
The greater increase in tax revenue will come from increased economic activity. I also believe that we will (and should) see an increase in energy taxes.
Clinton's tax increases were also predicted to "not make a dent" in the deficit....but, they turned out to put the federal budget in surplus.
In any event, since the amount supposedly to raised, why are the Republicans fighting so hard against it? Why did the Republicans mock the 47% of population that do not pay federal income taxes as "lazy takers that do not want to take responsibility for their lives"??
Is that not a call for widespread tax increases for the lowest earners, while having steadfast opposition to adding a few percentage points to the richest?
Isn't this immoral?