RUSH: Now, Obama is outside the Oval Office, the Rose Garden or wherever, making a statement supporting small business. We gotta get money into the hands of small business. But we’re not gonna cut their taxes, no, we going to find a way to lend ’em money that they don’t want to borrow. We gotta get capital; we gotta get money; we gotta support small business; everybody agrees that we gotta do this. He’s doing a great Saul Alinsky even as he speaks because while he talks about elevating and supporting small business and urging members of Congress to put partisan politics aside to support whatever his next destructive program is, the simple fact of the matter is that if you own a small business you are in for it come January.
Let me give you the details. ‘The Obama Administration and Congressional Democrats have said that they want to raise taxes in the top two income tax rates in January 2011. Under their plan, the 33 percent rate will rise to 36 percent, and the 35 percent rate will rise to 39.6 percent automatically in January. These rates affect families and small business owners earning at least $200,000 per year,’ because small business owners file their taxes, if they’re sub-S, they file on their personal tax return. Business profits in small business flow through to the business owner. ‘The business owner pays taxes on her small business by adding the profits to her income tax form. Therefore, personal income taxes are the same thing as small business taxes.’ A subchapter S, if I can explain this in great detail, if you’re a subchapter S cooperation, which the vast majority of small businesses are, you file your tax return every year on your personal tax return, not a corporate tax return, but your personal tax return. Whatever profit that you have made, which is what you pay yourself, is taxed at personal rates, not corporate rates.
So you, as a small businessman, if you have an income of 200 grand or more you’re facing a 40% federal tax rate, an increase. Right now you’re paying 35% all the while this guy is sitting there talking about trying to help you. (imitating Obama) ‘We gotta get capital in their hands,’ he said. ‘We gotta get money that they can lend and they can expand and that’s how jobs are created.’ No, it’s not. You wouldn’t know the first thing about creating jobs. Obama on Good Morning America yesterday was asked a stupid question, obviously a Clinton supporter, this reporterette asked Obama, ‘Do you feel the pain the American people are going through?’ and Obama, ‘Yeah, you know, our retirement accounts are taking a hit. We’re not immune here. We’ve taken a hit, too.’ Yeah, his wife has just booked 30 hotel rooms for four days at a five-star hotel in Spain. They’re gonna take four vacations inside of a month. But Obama feels our pain. He’s not paying a dime for 30 hotel rooms. This is for Michelle (My Belle) and one of their daughters, and they’re leaving on Obama’s birthday. And he’s not going. So the family is skipping out on the president on the day celebrating his birth. They’re going over to Spain. They’re going to stay someplace that’s reputed to be the nicest hotel in Spain, five stars. They have reserved 30 rooms. These people fly their dog in on a separate airplane on vacation. Oh, yeah, and they feel they’ve taken some hits, too.
So here’s the Bamster outside the White House, ‘We gotta get money into the hands of small businesses.’ Why? ‘So I can take it back starting in January.’ ‘According to the IRS, most small business profits pay taxes in households making more than $200,000 per year. The IRS keeps track of two types of small business income: sole proprietors, and ‘pass-through’ entities like partnerships and S-corporations. There were 30 million tax returns reporting small business income in 2008. On net (profits reduced by losses), these owners reported business profits of $981 billion. A large chunk of this net profit — $488 billion — faced taxation in households making more than $200,000 per year. A majority of small business profits will face a tax rate hike under the Obama-Pelosi-Reid plan,’ starting January 1, 2011. Forty percent tax increase and he’s out there today talking about how we gotta get money into the hands of small business. We gotta make sure they can go out and borrow the money out there, that’s how businesses hire. He wouldn’t know about hiring anybody if his life depended on it. He can hire all these czars and have the government, you and me pay for it, but he doesn’t know the first thing about generating income to pay anything. In fact, when he worked in a private sector business he wrote like he was behind enemy lines.
This man is a destructive force like we have never seen. And his people, the left is all angry, they’re still not happy. If I could do as much for this country in 18 months as this guy’s done against it, I’d be ecstatically happy. But they’re not. ‘There were 22 million tax returns reporting sole proprietor income in 2008. On net (profits reduced by losses), these owners reported business profits of $264 billion. A large chunk of this net profit — $90 billion — faced taxation in households making more than $200,000 per year. 34 percent of sole proprietor profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan. There were 8 million partners and S-corporation shareholders in 2008. On net (profits reduced by losses), these owners reported business profits of $717 billion. A majority of this profit–$398 billion — faced taxation in households making more than $200,000 per year. 55 percent of S-corporation and partnership profits will face a tax rate hike under the Obama-Pelosi-Reid tax hike plan,’ because all of these different business structures file their income taxes on their personal income tax return, which rate is going up to near 40% starting in July. So a majority of the small business sector is facing higher taxes under Obama. That’s not how you create jobs. It’s not how you expand business. It’s not how you expand the private sector.
‘In Fawning Obama Interview, ABC Elicits Hot Scoop about… Babysitting?’ Sasha and Malia babysit to earn extra cash, Obama says. Babysit who? Who are they babysitting? Are they actually leaving the White House and babysitting? Or are they babysitting Geithner’s kids? Does he have kids? Whose kids? (interruption) Well, Orszag has a couple illegitimate kids; maybe they’re babysitting his kids. I don’t know if they report the income. ‘Sasha and Malia doing babysitting to earn extra cash and Barack Obama says he is not that far removed from what most Americas are going through.’ Here’s the question: ‘Has your own retirement fund taken a hit? Can you feel the pain that other Americans are feeling?’ Obama said, ‘We’re not that far removed from what most Americans are going through.’ Yeah, we’re not far from you. It’s right through that gate. We’re not far removed from where you are. I mean, you see the homeless over there in Lafayette Park? They’re less than a football field away. We’re real close to them.
So Michelle (My Belle) and the fam — the Obamas made five and a half million dollars last year, by the way — Michelle’s Spanish hotel room rates, $2,859 a night. Michelle picked the hotel because the hotel Villa Padierna allows children. Does the Secret Service have to go along when these two kids babysit? Who are they babysitting? And does the Secret Service have to go along? You know, if they want to go spend all that money to go on a hotel vacation, fine, but make it theirs. Spend their money. Look, Benjamin Franklin said it, folks. Benjamin Franklin on wealth, in a letter to his trusted advisor Benjamin Vaughan, he considered whether a society was in need of a remedy for luxury. He argued against such a need. He said, ‘Spending on luxuries means somebody else gets paid.’ Ask John Kerry. He just went out there bought a 76-foot sailboat. He bought it in New Zealand so somebody in New Zealand made some money putting the thing together. He’s docked it there in Rhode Island. He didn’t take it to Massachusetts where he lives because it was a $500,000 tax if he does that. So the press cornered him yesterday, (imitating Kerry) ‘Oh, I pay my taxes, can I get outta here now?’ And he jumped in the SUV and sped off. And then I read he’s going to charter the thing. He is going to charter it, in addition to using it himself. He’s going to charter his 76-foot sailboat. Absolutely a cheapskate, it’s not even his money, it’s his wife’s money that bought the damn thing.
At any rate, so here you have all these phony baloney, plastic banana, good-time rock ‘n’ rollers talking about the rich are horrible here, the rich are horrible there, the Clinton wedding, we’re told today in a fawning New York Daily News story, the Chelsea Clinton wedding, between three and five million. It’s going to be the biggest wedding since Patricia Nixon got married. Really? You people in the Daily News not heard of Princess Diana? I think that’s a little bigger than the Nixon wedding, even though it wasn’t here in the United States. So they’re out there and of course the Clintons and the Kerrys and the Obamas are always just ripping into the rich, just maligning the rich and impugning the rich and the wealthy and threatening to get even with them, and then, lo and behold, look how they live? This is a great illustration of the ruling class versus the rest of us in the country class.
So Kerry didn’t buy the yacht with his money; it’s his wife’s. We don’t know who’s funding the Clinton wedding, even though Bill and Hillary reported income of $109 million over the recent years. (interruption) There is? I’m told there’s a big hoo-ha over people who are not invited? Really? People are just discovering they’re not invited? Really? Some big donors are not invited? Well, does Chelsea know ’em? You know, who’s going to be at this wedding? I’m going to ask you a question. (interruption) No, 500, Snerdley. Five hundred people, but how many of them does Chelsea know? Chelsea’s the bride. Her husband’s Mark Mezvinsky. How many do the bride and groom know? How many of these people at the Clinton wedding are actually friends of the bride and groom?
BREAK TRANSCRIPT
RUSH: So an e-mailer says, ‘Rush, you’re not suggesting the Clintons are ‘pimping out’ their daughter, are you? You’re not implying the Clintons are using this wedding to schmooze with important guests who could help their political careers and further pad their bank accounts, are you? I mean, that would be ‘pimping out’ their daughter — and, of course, it would be nice if you were, but you’re not the first one to say it, Rush. David Shuster of MSNBC once accused the Clintons of ‘pimping out’ their daughter. So you’re not on the cutting edge on this one, Rush.’ That’s the e-mail.
‘Subchapter-S Corporation Tax Rates’ is another e-mail. ‘Rush, I’m an S-Corp. I not only pay taxes on what I pay myself but the profits. For example, if I pay myself $100,000 and the company profits $200,000, I pay taxes on $300,000 on my personal return.’ Meanwhile, there’s Obama saying, ‘We gotta put more money in the hands of these small business guys so they can grow and hire people. That’s how you create jobs in America.’ You wouldn’t have the slightest idea.