Entrepreneur Takes Obama Challenge

Another listener takes Diana Furchtgott-Roth's challenge to Obama supporters to make sense of their candidate's economic proposals. This one says he's a small-business owner who believes the wealthy should pay more taxes:

I own a small medical device provider office and employ three people. My business currently grosses more than 250,000 however my net profit is less that 250,000. First of all, I want to clarify something.....I only get taxed on my net....This is a point that needs to be made more often because a lot of people seemed to get that confused!!!! Now my company is growing and I may exceed 250,000 net in the next couple of years. Under Obama's plan, at that point my taxes would go up. Being aware of that, I would have a choice. Do I pay more taxes or do I hire another employee. To a small business, payroll is an liability and hiring an employ will decrease my net income and could lower my taxes. As well, I will now have more spare time because when my business is busy and I don't have the employee's to help; I have to pick up the slack. On top of that, Obama is speaking of giving me a tax credit for my new hire. This makes it a no brainier...by hiring an employee I will pay less taxes, have more spare time, and get a tax credit....guess what I am going to do.

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