Who are the job creators?

[WonderGrunion]

In this argument over taxation, the right wing often says that you shouldn't raise taxes on those earning $1 million or more a year because they are the "job creators" and it would be foolish to increase their taxes during tight economic times. But is this really the case? Let's check out some statistics and see what we find.

The IRS defines a small business as those corporations that file as "S Corporations"

http://www.irs.gov/taxstats/bustaxstats/article/0,,id=96405,00.html

Certain corporations elect to be treated as S corporations for Federal tax purposes. Electing to be treated as an S corporation allows income to flow through the corporation without being taxed until it is claimed as income by the shareholders. This avoids double taxation of corporate income. Here you will find data tables and SOI Bulletin articles concerning 1120S corporations.

S corporations continue to be the most prevalent type of corporation. For Tax Year 2003, about 61.9 percent of all corporations filed a Form 1120S. The total number of returns filed by S corporations for Tax Year 2003 increased 5.9 percent to nearly 3.3 million, from nearly 3.2 million reported in Tax Year 2002. S corporations became the most common corporate entity type in 1997.

So the IRS says that almost 62% of all corporations are small businesses. This would seem to confirm that a majority of jobs in America are created by small business, a point often made by President Obama and even quoted by most Republics. Because of their S Corporation status they are taxed on claimed income and not on total sales. That leads us to this graph (the most recent data I could find in this form):

http://smallbiztrends.com/2010/11/how-much-money-do-small-business-owners-make.html



This shows that the average small business makes between $29 thousand a year and $692 thousand a year in income (the part that is taxed) depending on the type of business. This clearly shows that the average small business makes far less than $1 million a year. This means that increasing taxes on those making $1 million will not really touch the average small business owner.

As a final note, Mitt Romney claims to have left Bain Capital in 1999 . If we accept him on his word (try to suspend disbelief for a moment here), then he has been living on dividend and investment income ever since. That means Mitt Romney hasn't created a single job in over a decade whereas President Obama has been creating jobs through signing legislation for nearly the last 4 years.

[B Calm]

1. My employer has companies

all over the world. 7 factories in Michigan, 6 factories in Illinois, 4 factories in Indiana, 3 factories in Texas, 1 factory in Oklahoma, 1 in Kentucky, etc etc and he is considered a small business man! I'm serious as a heartbeat!!!

[orpupilofnature57]

2. People Fulfilling needs ,not greeds.

Education ,Medical ,infrastructure ,problem is you can't make 600% profit at it .The 1% is directly opposed to what makes them rich , a no lose ( for them ) situation ,we're allowed to crawl as long as they can leap.

[napkinz]

3. The TRUE Job Creators ...

[WonderGrunion]

4. I wish I could rec your response.

Nice finds.

[napkinz]

6. Thanks ... those two graphics deal with the GOP ...

Here's a couple more to emphasize the point that Romney is no Job Creator:

[randome]

5. More importantly, in terms of the election, how many jobs has Romney created?

I hope Obama asks that question during the first debate.

[napkinz]

7. Mitt = Job Killer!

[napkinz]

8. How many jobs has Calamity Bain created? That's an oxymoron!

[randome]

10. LOL! You're good.

[Iggy]

9. It's not the wealthy class

Creating new jobs.

right now numerous successful, highly rated S & P corporations are sitting on nearly $2 Trillion in
cash. there's so much cash sitting around doing nothing, not being invested in the U.S., some
of these corporations have to pay the banks to keep their money.

Gordon Gecko would not approve.

What are these corporations waiting for?? the other BULLcrap meme we constantly here from
the GOP and the one percent is: "Gee, we're really 'nervous' and 'uncertain' about the
future, about health care laws, blah, blah, blah". what a load of crap.

Did Zuckerberg sit around and wait three or four years before creating FB? or the two guys who built Google
into a global phenom?

Thus my response to these bullcrappers is: Since WHEN is business success guaranteed here
in the U.S. or anywhere else?

anyone knowing anything knows most new ventures _fail_. Isn't that what nearly every "How to be Successful" book tells us?? YES. there are no guarantees!!

so the "one percenters need more certainty" bullcrap is just that-- crap. and BTW, if business
conditions/environment in the U.S. are so horrid, then why is the Dow up over 13,000?

here's, IMHO, what the wealth class is waiting for: They want to see if they can get their boy
Willard in there.. and maybe win the senate. if this happens, oh yeahhhh, "It's Morning in America! Again."

This will mean continued low tax rate for the one percent, and fewer, if any of those "pesky" regulations
that just might cost a corporation some money.

Then we'll see the investment flood gate burst open as never before.. and these cheap ass
corporations will start hiring again.

[napkinz]

11. Private-sector jobs grew far more under Democratic than Republican presidents, 1961-2012

Private-sector jobs grew far more under Democratic than Republican presidents, 1961-2012

by Laura Clawson for Daily Kos Labor






The presidents who averaged the most jobs created per month were Bill Clinton, at 217,000; Jimmy Carter, at 188,000; and Ronald Reagan, at 153,000. That's right. Jimmy Carter beat Ronald Reagan. The only president to preside over a cumulative loss of private-sector jobs was, of course, George W. Bush.

http://www.dailykos.com/story/2012/05/08/1089785/-Private-sector-jobs-grew-far-more-under-Democratic-than-Republican-presidents-1961-2012

[WonderGrunion]

12. This should be every Democrat's campaign poster.

'Nuff said.