Congress’s Joint Tax Committee—not a conservative outfit—estimates that in 2013 about 940,000 taxpayers will have enough business income to meet Mr. Obama’s tax increase threshold. And of the roughly $1.3 trillion in net business income, about 53% will get hit with the higher tax rates.
This is because millions of businesses report their income as sole proprietors and subchapter S corporations that file under the individual tax code. So Mr. Obama wants these businesses to pay higher tax rates than the giant likes of General Electric or J.P. Morgan. Does that qualify as “tax fairness”?
Of course it doesn’t. It is demagoguery and naked politics. Derailing the economy is what Obama does.
When the top rate effectively goes to 41% (read article), the stock market is going to go into the toilet. The fall off the cliff has begun.