Obama’s Tax Plan Won’t Hurt Small Businesses, Democratic Leaders Say

October 24, 2008 - 4:40 PM
Democratic presidential candidate Barack Obama's plan to cut taxes for people making $250,000 or less a year will not hurt small businesses, Democratic leaders told CNSNews.com following the last presidential debate.
(CNSNews.com) – Democratic presidential candidate Barack Obama’s plan to cut taxes for people making $250,000 or less a year will not hurt small businesses, Democratic leaders told CNSNews.com following the last presidential debate.
 
While many small business owners are in that $250,000 a year category, the main goal of the Obama tax plan is to provide a tax cut to the middle class, the Democrats said.
 


When asked what will happen with those making over $250,000, Democratic Caucus Chairman Rahm Emanuel (Ill.) said the goal is to “make sure” the middle class get a tax cut.

“Median household income in the last seven years has dropped $1,200,” said Emanuel. “College costs, energy costs and health care costs have all gone up $4,800, so the middle class have been working harder, earning less, and paying more, and we have to have an economic policy that rights that chip.”

Bill Richardson, Democratic governor of New Mexico and a former Clinton administration official, echoed Emanuel’s comments, saying Obama will not raise taxes on anyone making less than $250,000. He said this will benefit 90 percent of America’s working families, and he thinks it will also help small businesses.

“He has a lot of positive initiatives to help America’s small businesses, like no capital gains tax if you are a start-up – if you’re under a certain number,” said Richardson. “I think that Senator McCain is trying to put the mantle on Obama like a Democrat who taxes everyone.”

”I think Obama’s progressive tax plan is not only fair, but it’s really got some good economic growth provisions,” said Richardson. “What Obama does, if you look at this small business tax plan, he cuts taxes for those starting up their business. No capital gains tax, which allows those small businesses to invest and hire more people.”