A Millionaire Small Business Would Benefit From More Average Customers With Money In Their Pockets

“The anti-tax crowd is boxed in…. Are Republicans going to deny the average working family a $1,500 tax break in order to spare millionaires a modest increase? That $1,500 or so, multiplied by every paycheck in America, would have a huge effect on economic growth next year, widely estimated as between 1.5 and 2 percentage points. The tax increase would affect only a tiny fraction of small businesses with employees, despite the endless Republican claims that it would stifle job creation.” - David Firestone of the New York Times

Republicans are caterwauling that paying for it with a surtax on the super-rich “amounts to a job-killing tax hike on small businesses.” Not only is that not true, the tax itself would in no way be a hardship on the 345,000 rich people who would pay an additional 3.25 percent, only on that part of their income that was over $1MM

Example: I own a store. I make a million every year. My customers now have more money to spend. They buy more. My profits go up. The 3.25% in increased taxes I pay on my income above $1 million is probably well below the margins I make on the goods/services I am selling.

The Republican rationale is that a wealthy person would rather make $1 million and pay 35% than make $2 million in a robust economy and pay a little more taxes.