{"id":30607,"date":"2008-10-13T01:01:01","date_gmt":"2011-05-19T03:15:20","guid":{"rendered":""},"modified":"2011-05-19T03:15:20","modified_gmt":"2011-05-19T03:15:20","slug":"explained_obama_s_lies_about_raising_taxes_on_small_business","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2008\/10\/13\/explained_obama_s_lies_about_raising_taxes_on_small_business\/","title":{"rendered":"Explained: Obama\u2019s Lies about Raising Taxes on Small Business"},"content":{"rendered":"
\n

RUSH: Those of you out there, forget what party affiliation that you have. Forget your ideological orientation. Those of you who own small businesses and those of you who work at small businesses, I want to speak to you directly and in a pure business fashion right to your heart, here. Obviously throw some politics in because lies are being told by the Obama campaign through and through, not corrected by the Drive-Bys, about small business. That figure of $250,000 is key. It is everywhere Obama speaks. It\u2019s used all the time when he talks about tax policy. Well, what is a small business in America today? Obama says that most small businesses do not earn over $250,000 a year. That is clearly a lie. <\/p>\n

It is impossible. It cannot be true. Your own instinct tells you that. You in small business know full well it can\u2019t be true. Now, the employees of a small business might believe it. Most employees don\u2019t get to see the books. But if you\u2019re an employee of small business, and there are five or six other employees in your small business (and that\u2019s a small business) just add up your combined salaries and find out if your small business has enough to pay them. If you\u2019re making $50,000 a year at a small business and there are five of you, that\u2019s $250,000 right there. If there are three of you and one\u2019s making 30, one\u2019s making 70, one\u2019s making 60, you can see how just the number of employees will get you close to what Obama says is the top of most small businesses. <\/p>\n

That $250,000 is key because he wants all of you who don\u2019t make that amount of money to think you\u2019re not going to get a tax increase. Now, remember, Obama has this new coalition of voters, the 30% to 35% who pay no income tax in this country. Not only do they not pay income tax, they want you to pay more. They have seen the benefits of no income taxes. They\u2019ve been told they\u2019re the backbone of America. They\u2019ve been told they\u2019re getting shafted. They\u2019ve been told the rich are getting all the tax cuts. They have been told that all that wealth and prosperity out there is being denied them by the rich. They pay no taxes, no income taxes. Federal income taxes. So they\u2019re thinking they\u2019ve been screwed, that they\u2019ve been shafted. Obama\u2019s playing to them, and he\u2019s telling them, ‘Because you\u2019ve been shafted for so many years by Bush and so many years by Reagan, we\u2019re going to get even with the people who shafted you.\u2019<\/p>\n

That\u2019s that magical figure of $250,000, and he\u2019s using it in a way that is an out-and-out lie. They have been saying that most small businesses do not earn over $250,000 a year, but the Small Business Administration has a different view. I have a post here from October 7th of this year from Patterico\u2019s Pontifications, and it\u2019s entitled, ‘Obama\u2019s Tax Plan and Small Business.\u2019 The genesis for Patterico putting this all together was Obama at the town hall presidential debate saying this about his tax policies, and it\u2019s according to a CNN transcript. Quote: ‘Only a few percent of small businesses make more than $250,000 a year. So the vast majority of small businesses would get a tax cut under my plan.\u2019 Now, ‘The US Small Business Administration (SBA) defines a ‘small business\u2019 according to its average annual receipts or the number of its employees.\u2019 <\/p>\n

I know numbers are hard to follow, but this will not be. I want you to keep sharp in your head the number $250,000, because that\u2019s the operative number that Obama uses. Remember Obama: ‘Only a few percent of small businesses make more than $250,000 a year. So the vast majority of small businesses would get a tax cut under my plan.\u2019 Okay. Here. Let\u2019s look at the maximum average annual receipts by industry that a business can have and still be classified as small business by the SBA. ‘Crop production of all types: $750,000.\u2019 Keep that $250,000 figure in mind because every business that I\u2019m going to list here, every small business is far larger than $250,000 in receipts. Yet Obama says most small businesses do not make over $250,000. ‘Crop production of all types: $750,000. Animal production except for cattle &amp; chicken\/eggs: $750,000. Cattle feedlots: $2.5M. Chicken\/egg production: $12.5M.\u2019 <\/p>\n

These are small businesses, according to the SBA. ‘Forestry &amp; logging: $7M. Fishing: $4M.\u2019 Did you know that forestry and logging has as many operators that are small businesses? It\u2019s a $7 million definition of a small business by the SBA. ‘Fishing: $4M. Irrigation, sewage, water supplies: $7M.\u2019 These are various areas. The size of your business — for example, if you\u2019re in housing construction and you\u2019re a business is under $33.5 million, you\u2019re considered a small business by the SBA. Now, keep in mind, Obama says the vast majority of small businesses don\u2019t earn more than $250,000. Let me keep going. ‘Heavy and civil engineering construction: $33.5M. Dredging and cleanup: $20M. Concrete, framing, and other housing contractors: $14M. Car dealers: $23-29M.\u2019 <\/p>\n

Do you know some car dealers are small businesses? Those of you who work at them do. If you own a dealership or series of dealerships valued in your receipts (these are annual receipts) between $23 and $29 million, you\u2019re a small business. ‘RV, motorcycle, &amp; boat dealers: $7M. Furniture, hardware, clothing &amp; sporting good stores,\u2019 if your receipts are under $7 million a year, you\u2019re considered a small business. ‘Electronic stores…\u2019 They\u2019re not talking the Circuit Citys, the Best Buys and all this. If you\u2019re a mom and pop electronics store, $7 million is the cutoff line for you to be called a small business. ‘Supermarkets, gas stations &amp; department stores: $27M.\u2019 Anything over that, and you\u2019re not a small business; anything under it, you are. ‘Pharmacies: $7M.\u2019<\/p>\n

Now, keep in mind, 250 grand. Obama in the presidential town hall debate said, ‘Only a few percent of small businesses make more than $250,000 a year. So the vast majority of small businesses would get a tax cut under my plan.\u2019 The truth is that if he\u2019s going to implement a plan that people over 250 grand personally or small business, Subchapter S filing under a personal return, if he\u2019s going to have a tax increase on anybody more than 250 grand, 99% of small business is going to get a huge tax increase! The very little guy that Obama claims to want to help is the very guy that\u2019s going to get clipped here, because once these taxes go up the first instinct of the small businessman or woman is to survive as a small business. <\/p>\n

If your taxes go up and you have an economy like this and you cannot grow for a little while because people don\u2019t have a whole lot of disposable income because their taxes are going up, too, what are you going to do? You can\u2019t keep paying people if your business is going down. Your job is to have your business survive because you have to go through the up and down cycles. You\u2019re going to have to lay people off. The business cannot purposely lose money for humanitarian reasons, for a very long time. If it does, it will go out of business and nobody will get anything from it. I listed for you — one, two, three, four, five, six, seven, eight, nine, ten, 11, 12, 13, 14 — 17 categories of small business. Not one of them would qualify for a tax cut under Obama\u2019s plan. There are probably some small businesses that are under $250,000, but they are so tiny. <\/p>\n

They are so small. They might be sole proprietorships. Now, there are a whole lot more examples. We\u2019re going to post all this at RushLimbaugh.com. There are a whole lot more examples at the link. Most of the industries in the table, such as manufacturers of food, beverages, apparel, print, oil, gas, plastics, plumbing, machinery, computers, on and on and on are considered small businesses based on their total number of employees instead of average annual receipts. Now, in those industries, the cutoff between small and large businesses range from 500 to 1,000 employees per business or industry. Now, I\u2019m going to tell you what. If you have a small business with anywhere between 500 and a thousand employees, I will guaran-damn-tee you your annual receipts are higher than $250,000 –and you, too, are going to get Obama\u2019s took us increase.<\/p>\n

It is going to be a personal income tax rate increase, for those of you that file on your personal form, Subchapter S, on your personal return. You\u2019re going to get your own marginal tax rates go up. You\u2019re going to have to a capital gains tax increase. And it\u2019s likely that at some point down the road Obama will shore up and raise corporate taxes, in the midst of an economy that all the time all the so-called experts say is going to take a while for it to rebound here. Now the Dow Jones Industrial Average is up almost 600 points now. It\u2019s at 581. We\u2019re over 9,000 at 9,032, and of course it\u2019s (clapping) but why? Because the feds and everybody else has taken over all these banks! So the supposed free marketers on the Street here are getting all happy about socialism and nationalization. <\/p>\n

Don\u2019t forget, in the midst of all this, we\u2019ve got Pelosi and Reid and Hoyer planning a special session after Obama wins to start this process of tax increases going to eliminate their lifting of the ban of weeks ago on offshore drilling. They think they\u2019ve got this in the bag. Obama is running around using this $250,000 figure for every tax increase he\u2019s planning because he figures 99% of the people in this country are employees, and they will also believe that their business will not get a tax increase because, ‘Obama is smart. Obama is suave! Obama is smooth. Why, it\u2019s so nice to have finally a smart guy that will be leading and speaking for America.\u2019 He\u2019s lying through his teeth. Now, forget politics here, folks. We\u2019re talking about it as if this ever happens, if this actually happens, with 95% or more of all small businesses and the corporate tax, too, going up, we\u2019re talking about your standard of living. <\/p>\n

We\u2019re talking about your quality of life. We\u2019re talking about your ability to save. I don\u2019t care whether you buy stock or you\u2019ve decided to put the money in the mattress, you\u2019re going to have less of it, and eventually the oil price is going to rebound and go up. It\u2019s going to happen. There\u2019s something awfully suspicious about that dropping from 130 to 80 bucks two weeks or three before an election. But it\u2019s what it is, and of course everybody\u2019s putting out this news, ‘Largest single drop in the gasoline price in history!\u2019 It\u2019s thirty cents, from 3.80 to 3.30, average across the United States. Now, I have even more on this small business stuff. These numbers get even harder to translate on radio, but it is from the Census Bureau, and it\u2019s the receipt size of firms. It\u2019s the latest, most recent data we have for this are 2002, receipt size of employer firms.<\/p>\n

It illustrates here quite readily that the… Just take this, the 100 to $499,000 figure that I mentioned earlier, there are 2,387,780 firms, there are two million establishments, there is about 8.8 million workers. The annual payroll total is… Well, forget those numbers. If you look at this breakdown and you add up all the firms and all the revenue and all the employment, there is no way that the vast majority of small businesses have only receipts of $250,000 a year! There are a total of 5,697,759 firms (we\u2019re discussing here small business), 1.2 million of them have less than a hundred thousand dollars in receipts which makes them sole proprietorships; 2.3, almost 2.4 million are between 100 and $500,000. And then as you go higher, the numbers decrease. But when you add them all up, you find that… No matter how you look at it, is the point — whether you look at it as number of employees, whether you look at it as receipts — there\u2019s no way Obama\u2019s even close to the truth on this.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: What a teachable moment I have here for you. I love teachable moments. I just got a couple of e-mails. I checked them; there may be more than two, but I just checked: ‘Rush, when you talk about receipts, a small business\u2019s receipts, $250,000, are you talking about gross or net?\u2019 Folks, you\u2019re asking the wrong guy! The onus here is not on me. You\u2019re asking the wrong guy. We don\u2019t know if Obama\u2019s talking about receipts or profits, \u2019cause nobody\u2019s asking him, and I\u2019m not the one promising to raise your taxes on this. The little squirrel Obama is. Somebody needs to ask him, ‘Are you talking about receipts or profit? Are you talking about gross or net?\u2019 We don\u2019t even know if he\u2019s including inventory. Folks, do you understand, in a small business, you can have one person that runs a realty shop, you can have one person that runs a catering business. What about inventory, how do you calculate that in this $250,000? We do not know because Obama is not saying. Nobody\u2019s asking if he\u2019s talking about net profit, gross, we have no idea what he\u2019s talking about and neither does he, because he is lying. <\/p>\n

The $250,000 number is designed to get most Americans thinking that they\u2019re going to get even with the people who have stolen everything from them and have gotten unfairly wealthy. He\u2019s using that $250,000 figure to secure the votes of people who want to see everybody at 250K or over get their taxes raised. The $250,000 figure on FDIC insurance guarantees it\u2019s just a further way to promote that number. Everywhere you look, Obama\u2019s magic number is $250,000. We had a brilliant caller last week, if you didn\u2019t hear this, who said Obama and the Democrats are out there saying they are for the American dream. In Obama\u2019s world, the American dream ceases to exist once you get to $250,000. ‘Well, Rush, do you mean net worth? Do you mean annual income?\u2019 I don\u2019t know, folks, \u2019cause nobody\u2019s asking Obama. I don\u2019t know if his definition of a small business of $250,000, which he says the vast majority have receipts that are smaller than $250,000. I don\u2019t know if he\u2019s talking gross or net. Don\u2019t ask me. The onus is not on me to explain this. Ask him, or get your friendly Drive-Bys. Here\u2019s the real point. It doesn\u2019t matter because he\u2019s lying \u2019cause the number isn\u2019t anywhere close to being accurate in the first place. So don\u2019t get caught up in net or gross. Get caught up in screwed or free.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: This $250 grand number is all moot anyway because Obama voted twice in the 2009 budget resolution to raise taxes on anybody making $42,000 a year or more.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: We\u2019re going to start Jacksonville, Florida. Hi Carl. It\u2019s nice to have you, sir, on the EIB Network. Hello.<\/p>\n

CALLER: Hey, how you doing, Rush?<\/p>\n

RUSH: Very well, sir. Thank you.<\/p>\n

CALLER: When you talking about the small businesses, I\u2019m probably the smallest business owner right now that you can find, you know, when you talking about people owning small businesses because I\u2019m a single man operation. I\u2019m trying to make my business grow, and I know it\u2019s going to grow and it\u2019s going to do well past 250 gross. That\u2019s what I\u2019m talking about, and my concern is, what\u2019s my incentive, then, to hire guys to even make this business grow if I\u2019m going to get taxed up the yin-yang that he\u2019s talking about, Obama. And I don\u2019t think it\u2019s net. I think he\u2019s talking about gross. I don\u2019t think he\u2019s talking about income. Because small businesses, I mean there are thousands of us out there that own small businesses and do this. I mean, it\u2019s ridiculous.<\/p>\n

RUSH: We don\u2019t know what he\u2019s talking about.<\/p>\n

CALLER: Well, that\u2019s the thing, and that\u2019s what I wish somebody ask him. I wish somebody would.<\/p>\n

RUSH: We don\u2019t know if he\u2019s talking income. We don\u2019t know if he\u2019s talking gross. We don\u2019t and he doesn\u2019t, either. None of this is true! The $250,000 figure and his statement that 95% of small businesses earn less than that — gross, net, inventory, whatever — it\u2019s just the magic figure to play the class envy card.<\/p>\n

CALLER: But he\u2019s gotta clarify that because it\u2019s scary. I\u2019m telling you, everybody I know is a small business owner.<\/p>\n

RUSH: Let me ask you a question. Let me ask you a question.<\/p>\n

CALLER: Sure.<\/p>\n

RUSH: This statement that he\u2019s gonna raise taxes on people over 250 grand, he\u2019s made it numerous times in the campaign. It was last week in the town hall presidential debate where he said small businesses, the vast majority of them are $250,000 or less. He didn\u2019t clarify, specify or anything. You said he\u2019s going to be forced to have to explain it. Other than today have you heard anybody even reference the fact he said it in that debate?<\/p>\n

CALLER: No.<\/p>\n

RUSH: Did you watch the debate yourself?<\/p>\n

CALLER: Yes, I did.<\/p>\n

RUSH: You didn\u2019t even pick up on it then until I talked about it today?<\/p>\n

CALLER: I wish he did because I\u2019ve been talking about it for the past month, and I don\u2019t hear anybody talking about it and try to get more specific on it, you know what I\u2019m saying? That\u2019s crazy, because there are a lot of small businesses that make over 250. When I say I\u2019m not, I just started last year, and my business will go over 250,000 because I know it can. The guys that I do business with and the people that are around me that do own small businesses are doing more than 250,000 a year, and that\u2019s what scares me.<\/p>\n

RUSH: Look, I got very little time. Do your friends know what\u2019s headed for them?<\/p>\n

CALLER: Yes, they do, and that\u2019s why they\u2019re not voting for Barack Obama.<\/p>\n

RUSH: All right. Well, if you run into people, it doesn\u2019t matter… You know, don\u2019t use Obama\u2019s name. Well, you have to use Obama\u2019s name. You run into other small businesses who don\u2019t know what\u2019s in store for them, tell \u2019em. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Those of you out there, forget what party affiliation that you have. Forget your ideological orientation. Those of you who own small businesses and those of you who work at small businesses, I want to speak to you directly and in a pure business fashion right to your heart, here. 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