MORE ECONOMIC BS FROM THE GOP

Just as they did about the estate tax, the GOP and its minions are lying about the effect of taxes, this time on small businesses. Below I produced part of IRS Form 1120S for small businesses and you can get the instructions for filling it out here. Note that ALL business expenses, including investments, are deductible, so this fellow is LYING:

Small manufacturers cry uncle
By VICTORIA MCGRANE 3/11/09 10:06 AM EDT
The POLITICO

Stew McMillan, president of Task Force Tips, a 200-employee manufacturer of fire hose nozzles based in Valparaiso, Ind., said there’s a grim new joke going around.

“How many more things can the people who make over $250,000 pay for?”

“It may say on my tax return that I made $3 million, but the fact is that all of it went back into reinvestment in the company,” McMillan said, explaining that his personal income was below the $250,000 benchmark. That’s different from a basketball player making $23 million a year or a Wall Street banker, he argued.

For a small-business owner, “that profitability is what grows that business, and it’s definitely a detriment,” he said.