Tax Increase on 'Rich' People Planned by House Democrats Would Strike More Than a Million U.S. Small Businesses

(CNSNews.com) – More than a million small business owners and about two-thirds of the profits earned by U.S. small businesses would be hit by the income tax increase on the "rich" that House Democratic leaders want to enact to pay for the health-care reform plan President Obama wants passed this summer, a taxpayer watchdog says.

Ryan Ellis, director of tax policy for Americans for Tax Reform, told CNSNews.com he calculated that 1.09 million of 21.5 million small business owners would see a one- to three-percent surtax on their profits in order to fund the House of Representatives’ trillion-dollar health care reform bill.

While only about five percent of small business owners would be exposed to the extra charge, Ellis says two in every three dollars of profit made by small businesses would be subject to it.

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